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Using the above information, and assuming all other cost information increases by 2% from the 2021 budget, you now conduct sensitivity analysis on the effects

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Using the above information, and assuming all other cost information increases by 2% from the 2021 budget, you now conduct sensitivity analysis on the effects of the proposed interventions on the 2022 contribution margin. The managers of Brick Co have requested that in doing so, you consider both the effects on the income statement as well as on the pricing of each of the two types of products relative to the costs involved. Management would like you to do this analysis under both traditional costing and ABC.2 To do this: I. Categorise the different costs according to whether you believe them to be either variable or fixed, explaining your reasoning for doing so within your analysis. 2. Then provide a critical analysis by comparing and contrast the effects of these changes first for the traditional costing contribution margin and then for the activity- based costing contribution margin, explaining why the outcomes are as they are and what the implications would be for Brick Co. In doing the above please be sure to state any assumptions made. 3. Follow your analysis with recommendations to the management of Brick Co with respect to the investments and pricing policy changes. Then comment on any specific flaws in Brick Co's proposed ABC system and in any of the proposed interventions

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