Please review the documents and answer the following questions:

Calculate the breakeven revenues for 2014 using the information given above.

1. Re-calculate the breakeven revenues if variable costs are 58% of revenues.

2. Calculate Freddie Corporation?s operating income for 201 if variable costs had been 58% of revenues.

3. Discuss the following issues by answering the questions:

* What are the ethical issues involved in this case? Explain your answer.

* How do these issues relate to rules-based standard setting and principles-based standard setting?

* Do you feel that the Production Manager is acting improperly or immorally? Why or why not? Please explain your response.

* What stakeholders would be affected if the Controller implemented the Production Managers suggestions? Why?