Partial CostVolumeProt Table Self Driving Freight Lines, LLC Partial Cost-Volume-Prot Table at 25% of capacity % Capacity 0% 25% Units 0 1,250 Revenues S 0 S 57,500 Prime costs 0 12,500 Selling - variable 0 3,750 Shipping variable 0 6,250 Contribution margin S 0 3 35,000 Fixed costs 54,600 54,600 Prots $054,600) an 9,600) MEMO to CEO x Self Driving Freight Lines, LLC MEMO to CEO To: Otto Pilot, CEO From: Taxem Minimum, CPA and Controller Date: November 27, Year 8 RE: Import tariff Well, the politicians may do it. They're moving forward with their plan to subject our imported direct materials to a 25% import tariff. l have been invited by our senator to inform her as to how the tariff would impact our business. I have prepared a cost-volume-prot analysis with and without the tariff. Sales price was the same for both scenarios at $46 per unit. Calculations were based on operating at full capacity. The tariff tax was added to the direct materials cost. Let me know if you have any questions. Taxem MEMO to Controller x Self Driving Freight Lines, LLC MEMO to Controller To: Taxem Minimum, CPA and Controller From: Sammie Johnston, Production Manager Date: November 28, Year 8 RE: Import tariff Taxem, Our full capacity is 5,000 units, assuming nothing changes. Direct materials are 80% of prime costs, prior to any import taxes. All direct materials are imported. Sammie Taxem Minimum, CPA and Controller for Self Driving Freight Lines, LLC, is evaluating how an import tariff would affect the business. You have been asked to provide key numbers for the analysis. For each item, enter the appropriate amounts in the associated cells below using the information provided in the exhibits. If the amount is zero, enter a zero (0). Round all amounts to the nearest whole number. Enter all amounts as positive numbers. Item Without import tariff With import tariff 123 123 '|. Direct material costs per unit 123 123 2. Variable costs per unit 123 123 3. Contribution margin per unit (in dollars} 123 123 4. Contribution margin ratio (as a percentage) 123 123 5. Maximum profit 123 123 6. Break-even point in units 123 123 7. Break-even point in dollars