The new CEO of Richard Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following? information, but with some data missing:

Total sales revenues	$???
# of units produced and sold	500,000 units
Selling price	$???
Operating Income	$195,000
Total investment in assets	$1,500,000
Variable cost per unit	$2.75
Fixed costs for the year	$3,500,000

1. Find? (a) total sales? revenue, (b) selling? price, (c) rate of return on? investment, and? (d) markup percentage on full cost for this product.

2. The new CEO has a plan to reduce fixed costs by $150,000 and variable costs by $0.20 per unit while continuing to produce and sell 500,000 units. Using the same markup percentage as in requirement? 1, calculate the new selling price.

3. Assume the CEO institutes the changes in requirement 2 including the new selling price.? However, the reduction in variable cost has resulted in lower product quality resulting in 10?% fewer units being sold compared to before the change. Calculate operating income? (loss).

4. What? concerns, if? any, other than the quality problem described in requirement? 3, do you see in implementing the? CEO's plan? Explain briefly.