situations and make recommendations to the management team. Read the requirements. Begin by calculating Division A's current full product cost. Division A's current full product costs are its target full product cost, therefore Division A be able to acheive its target profit. Begin by calculating Division A's new target fixed cost. Will this decrease in variable costs allow the company to achieve its target profit? Since the company's actual fixed costs are the new target fixed cost amount, Division A be able to achieve its target profit without having to take any other cost cutting measures. why not? Begin by calculating the cost-plus price per unit. (Round your answer to the nearest cent.) retailers for $3.75 each. Dawson's management team wants to earn a 6% return on investment on the division's assets. a. What is Division A's target full product cost? b. Given the division's current costs, will Division A be able to achieve its target profit? c. Assume Division A has identified ways to cut its variable costs to $1.25 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the division to achieve its target profit? $130,000 next year to advertise and its variable costs continue to be $1.25 per unit, what will its cost-plus price be? Do you think Division A will be able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year: expenses by $14,000. a. Prepare a differential analysis to show whether Division B should drop the T205 product line. b. What is your recommendation to the manager of Division B? following data: After expansion, the factory will have a production capacity of 4,600 machine hours per month. The plant can manufacture either 23 units of K707s or 45 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. uses straight-line depreciation and requires an annual return of 10%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. c. Use Excel to verify the NPV calculations in Requirement 4(a) and the actual IRR for the two plans. How does the IRR of each plan compare with the company's required rate of return? situations and make recommendations to the management team. Read the requirements. Begin by calculating Division A's current full product cost. Division A's current full product costs are its target full product cost, therefore Division A be able to acheive its target profit. Begin by calculating Division A's new target fixed cost. Will this decrease in variable costs allow the company to achieve its target profit? Since the company's actual fixed costs are the new target fixed cost amount, Division A be able to achieve its target profit without having to take any other cost cutting measures. why not? Begin by calculating the cost-plus price per unit. (Round your answer to the nearest cent.) retailers for $3.75 each. Dawson's management team wants to earn a 6% return on investment on the division's assets. a. What is Division A's target full product cost? b. Given the division's current costs, will Division A be able to achieve its target profit? c. Assume Division A has identified ways to cut its variable costs to $1.25 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the division to achieve its target profit? $130,000 next year to advertise and its variable costs continue to be $1.25 per unit, what will its cost-plus price be? Do you think Division A will be able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year: expenses by $14,000. a. Prepare a differential analysis to show whether Division B should drop the T205 product line. b. What is your recommendation to the manager of Division B? following data: After expansion, the factory will have a production capacity of 4,600 machine hours per month. The plant can manufacture either 23 units of K707s or 45 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. uses straight-line depreciation and requires an annual return of 10%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. c. Use Excel to verify the NPV calculations in Requirement 4(a) and the actual IRR for the two plans. How does the IRR of each plan compare with the company's required rate of return