Tom has recently started a toy business. If everything goes well, he hopes to make an operating

income of 20,000. Tom makes and sells only one toy truck. He plans to sell each toy truck for

$10 dollars. Tom has a variable cost of 5 dollars a toy and fixed costs of 25,000. He is new to his

business, so he is looking at different ways to map his costs. Tom has reached out to you for

consulting. As a consultant firm write tom a memo letting him know his breakeven point,

quantity of toys needed to be sold for desired operating income and describe ABC costing. Let

him know if he should invest in such a system with his current business needs. If not, should he

consider using such a system in the future?Two pages memo length (1000 words).Provide explanation of CVP analysis, breakeven point, activity-based costing with

respective recommendations to Tom. Include a self-made graph of CVP analysis.