Scenario 6 Start from the original contribution margin. The Production Department has researched a method of producing more boxes of muesli each day at a 10% lower cost than the current process. The new production will require investment resulting in an increase in fixed costs of 12,000 each time period. Assuming that sales price and quantity remains the same, analyze the effects of the new production method. 28. What will be the new net operating income in this scenario? Should Muesli AG invest in the new process? 29. How does the break even point with the new production process compare to the break even point you originally calculated? 30. Compare the contribution margin ratio in this scenario to the contribution margin ratio in scenario 1. What caused the change? Scenario 6 Contribution Margin Statement Ratios Per Unit Information Break Even [29] 30,000 boxes sold #of Boxes 225,000 7.50 Sales Revenue CM per unit Sales Revenues Variable Expense Contribution Margin Fixed Expenses Net Operating Income [28] [30]