Was wondering if you could could help me with 3B??

thanks

Case Study W! or: Max we would need to estimate the potential environmental costs and include them in your Analysis. Lest Max: You can't do that. We are not violating any laws. There is some possibility that we may have to incur environmental costs in the iture, but if we bring it up now, this proposal will not go through because our senior management always assumes these costs to be larger than they turn out to be. The market is tough, and we are in danger of shutting down the company. I don't want all my colleagues to lose their jobs. The only reason our competitors are making money is because they are doing exactly what I am proposing... Source: Hugged, H. Edwmls, L. Medlin, J. and Tilling, M. 2005. Accounting. Wiley: Queensland. Required: 1. Using the information provided by Lester . _ _ a) Prepare an income statement forthe year ended 30 June 2017 showmg contribution margin. b) What is the company's break-even point in cars? in sales dollars? In this more or less than the maximum size of the market for the Moveover Magnet? c] Should some of the factorybe disposed of and would this achieve the prots demanded bythe parent company? What other factors should be considered? 2. Using the information proposed by Max a) Calculate the company's break-even point in sales dollars if variable costs are 30% of revenues. b) Calculate the company's prot for the year ended 30 June 2017 if total variable costs had been 30% of revenues. 3. Discuss the ethical issues involved a) who are the stakeholders? b) Is the production manager, Max, acting ethically? Which of the principles set out in the Code of Ethics for Professional Accountants have been violated? c) What are Lester's ethiml obligations? d) What should Lester do? Critically evaluate each course of action. 4. Make recommendations for improving the protability of Moveover Magnets