Time-Adjusted Cost-Volume-Profit Analysis Assume The Hershey Company is considering the desirability of producing a new chocolate candy called Pleasure Bombs. Before purchasing the new equipment required to manufacture Pleasure Bombs, the company performed the following analysis: Unit selling price..... Variable manufacturing and selling costs. Unit contribution margin ... $2.50 (1.85) $0.65 Annual fixed costs Depreciation (straight-line for 5 years) Other (all cash). $ 62,000 48,500 Total .... $110,500 Annual break-even sales volume = $110,500 = $0.65 = 170,000 units Because the expected annual sales volume is 200,000 units, Hershey decided to undertake the production of Pleasure Bombs. This required an immediate investment of $310,000 in equipment that has a life of four years and no salvage value. After four years, the production of Pleasure Bombs will be discontinued. Required a. Evaluate the analysis performed by the company. b. If Hershey has a time value of money of 8%, should it make the investment with projected annual sales of 200,000 units? c. Considering the time value of money, what annual unit sales volume is required to break even