Using the information provided in the exhibits, calculate the breakeven numbers for Scissors in units and dollars (rounded to the next unit and nearest dollar, respectively), as well as the maximum profit for Scissors, for each scenario below. Production Concerns Effect of Proposed Tariffs To: Josh Collins, Product Manager at Office Supply Creation To: Jessica MacDormitt, Accounting Manager at Office Supply Creation From: Alyssa Johnson, Fargo Plant Manager at Office Supply From: Josh Collins, Product Manager at Office Supply Creation Creation Subject: Effect of proposed tariffs on our new product, Scissors Subject: Production concerns about Scissors Date: December 20, Year 3 at 2:39pm Date: November 19, Year 3 at 3:17pm Hi Jessica: Hi Josh: We know that the recent trade war with the Republic of Charlemagne will After viewing the data at my disposal, you can count on us being result in tariffs on steel imported from our supplier located there. Best able to produce 400 units of Scissors per year. If we exceed 400 guess is it will be a 10% tariff, but sources report that it could go as high as units, our quality assurance will decrease unacceptably. 35%. In either event, the tariff will be set by the end of the month and it will Best regards, be effective January 1, Year 4. I'll keep you posted. Alyssa Best regards, Josh Office Supply Creation Sales Order Costing Analysis To: Josh Collins, Product Manager at Office Supply Creation From: Jessica MacDormitt, Accounting Manager at Office Supply Creation Subject: Costing analysis Date: November 21, Year 3 at 11:24am Josh, I had my team conduct extensive analysis of the costs of Scissors, our newest product. We believe you can base your analysis on the following information: Variable cost =$25 per unit Contribution margin =$15 per unit Fixed costs =$500 Materials currently account for about 40% of variable cost. The rest is conversion cost. Please let me know if you have any other questions I can help you answer. Best regards, Jessica