Responsibility Accounting Case You are the Controller for GenericCompany, LLC. GenericCompany, LLC sells one item, Product X. During the year GenericCompany had $320,000 of fixed costs. The company sold 20,000 units of Product X for $50 each. The variable cost per unit of Product X is $30. The company has an income tax rate of 40%. The company had total operating assets at the end of last year of $550,000 and $450,000 at the end of this year. The company president is considering some projects and would like your teams help understanding how these projects might affect the companys Return on Investment (ROI). To complete your analysis, you need to first prepare a Contribution Margin Format Income Statement. Then you will need to calculate Profit Margin, Asset Turnover and ROI. The President wants to know how each separate project below might affect the Profit Margin, Asset Turnover and ROI. Consider each project separately, use the Contribution Margin Format Income Statement for this year to evaluate each project, starting in each case from the original ROI computed. 1. The company negotiates a deal with a vendor for less costly materials, resulting in a cost savings of $10,000 per year 2. If the company uses Lean Production, the company can reduce the average level of inventory by $100,000 (the released funds will be used to pay off bank loans.) 3. The President believes that the company can increase sales by $100,000 and operating assets will remain unchanged 4. The company is considering issuing bonds and will use the proceeds to purchase $125,000 in machinery and equipment at the beginning of the period. Interest on the bonds is 12% and is paid semiannual. Sales will remain unchanged. The new, more efficient equipment reduces production costs by $5,000 per year. 5. The company is considering investing $180,000 of cash (received on accounts receivable) in a plot of land that will be held for possible future use as a plant site. 6. The company is considering scrapping and writing off obsolete plant assets carried on the books at cost of $100,000 and accumulated depreciation of $80,000. Prepare a brief memo to the President explaining the results. The calculations must be completed in Excel using formulas. It should be easy to follow and professional in appearance. The brief memo is to be included in the Excel workbook in a textbox. The memo must be free of spelling, grammatical and punctuation errors. You will submit your individual attempt first in the Group Discussion Forum. Your group will then work together in class and your selected group leader will submit the final Excel Workbook. Do not merely choose one of the group members' work to submit. After collaboration, major changes to the end product are expected. Points will be deducted if any groups final submission exactly matches those of one group member. Failure to submit your own individual attempt first and/or attend class during the group work will result in a grade of zero for the Case. Note that you will also evaluate your group members at the end of the case and the evaluation will affect each group members grade. Failure to submit an evaluation will result in a grade of zero for the case.