Would like this done by Monday, but preferrable Sunday. Can be done in word or excel, but must show work on all problems! I must be able to see how the answer was derived from given information. Thanks

Acct. 509 Graded Assignment 1 Fall 2016, 25 points Instructions: The first graded assignment for Acct. 509 follows on the next page. The assignment is due by 11:59pm on Tuesday, September 20, 2016. You may discuss the assignment with members of this class and the professor. However, each individual must prepare their own solution and write their own responses to the questions and recommendations. It is not acceptable for one person to do it or for different people to do different parts and share with others! Copying and sharing files is academic dishonesty and will carry stiff consequences. When you turn in your assignment, please indicate who you conferred with (if anyone) or that you worked alone. You may (but are not required to) use Excel to complete your numerical analyses. However you decide to complete the assignment, you MUST SHOW ALL YOUR WORK! If I cannot follow how you arrived at your solution, then you will not receive credit for your response. Work may be shown using the cell references in the formulae used in excel, or it may be shown explicitly by illustrating and describing each step. I must be able to see how your answer was derived from given information. If I cannot do this, then work has not been shown. Please e-mail me your electronic file(s) at Matthew.Notbohm@business.und.edu when you are finished. Reminder: Please retain an ungraded copy of this assignment for your MBA Assessment Portfolio. See me if you have questions or problems with this assignment. Acct. 509 Graded Assignment 1 Fall 2016, 25 points Christian Company manufactures and sells one of its products at a price of $120.00 per unit. The costs of manufacturing and marketing the product at the company's normal volume of 10,000 units per year follow: Cost per unit Manufacturing costs: Direct Materials $32.00 Direct Labor 21.00 Variable overhead 7.50 Fixed manufacturing overhead ($255,000 total) 25.50 Total manufacturing costs per unit $86.00 Nonmanufacturing costs: Variable marketing, distribution & administrative $15.30 Fixed marketing & administrative ($32,000 total) 3.20 Total nonmanufacturing costs per unit 18.50 Total cost per unit $104.50 Unless otherwise stated, assume that the situations described in the questions below are independent of one another. a. Compute the following: (1) What is the Christian's breakeven point in units? (2) Assume an income tax rate on pretax income of 20%. What is Christian's after tax net income at the normal volume level? (3) How many units does Christian Co. need to produce and sell to achieve an after tax profit level of $100,000? b. Market research estimates that if the price per unit were decreased from $120 to $110, sales volume would increase by 15% to 11,500 units per year. Assuming that the cost behavior patterns implied by the data above persist, what would be the pretax operating income impact of taking this action? Should they do it? Explain why? c. Christian Company has 50 units in their inventory that were produced last year and that have small defects. Due to the defects, it will be impossible to sell these units at the normal price. These units must be sold through regular channels (thus incurring the usual variable marketing costs) at reduced prices or the inventory will soon be worthless. What is the minimum acceptable (by Christian) selling price for these units? Explain your answer. d. Christian Company is considering investing in a new, more automated, production process. The new equipment would increase Christian Co.'s fixed manufacturing overhead costs by $20,000 per year. However, this new investment is expected to reduce Christian's direct labor costs by 10% and their variable manufacturing overhead costs by 20%. The expected sales volume, selling price, and other costs are expected to remain the same. (1) What is the breakeven point if Christian invests in the new equipment? (2) At what volume level would Christian have the same pretax operating income under either cost structure? In other words, what is the point of indifference for sales volume? (3) How would this change in cost structure affect Christian's operating leverage? Discuss how operating leverage could impact this decision? (4) What is your recommendation - should Christian invest in the new equipment? Explain your recommendation (why or why not?)