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The BREAK-EVEN ANALYSIS A company is considering a redesign to its existing production process. It will incur fixed costs of $10,500,000.00. The company estimates that
The BREAK-EVEN ANALYSIS A company is considering a redesign to its existing production process. It will incur fixed costs of $10,500,000.00. The company estimates that the production process redesign will reduce the variable cost of production per unit from $15 to $14. The product sells for $20 per unit. 1. What quantity is required for the production process redesign to break-even? 2. If total demand for the product is estimated to be 2,000,000 units, what contribution to profit would the process re-design make? 3. Based on your break-even calculation, is this a good investment? Explain why or why not. 4. Show all work & calculations Assignment Format: Excel Spreadsheet for all calculations (formulas) Formulas must be present in cells. Only ONE Excel document allowed for submission. Clearly identify and explain your calculated answer. Your answer should not just be a figure (on the paper). Please tell me what it is. Include verbal commentary (an analysis) to explain question #3. In addition to Excel, you may use a Word doc for all non-quantitative parts, as appropriate
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