y MuUE ave Case 4 Directions Pro Eva WALL Sp21 References Mailings Review View Tell me Draw Share Layout Design calibri AA AAS EE21 Dictate Styles Styles Pane The annual revenues are based on selling 4,000 machines at a price of $17,500 each. The annual expenses include $10,000,000 of fixed costs and $4,000 of labor per machine and $3,500 of raw materials cost per machine. Tax rate is 25% Perform a scenario and a sensitivity analysis. Use Ch 11 excel templates and adjust as needed, Unit sales are expected to vary by plus or minus 5%. Prices are expected to vary by plus or minus 5%. Unit costs are expected to vary by plus or minus 10%. Fixed costs are expected to vary by plus or minus 10%. 1. Should the company approve the project? Why? Describe any limitations of these analyses. 2. After performing the sensitivity analysis, which are the two most risky variables? 3. What do you recommend regarding these variables? Why? Part 3. Break-even Analysis Use the updated assumptions from Part 2 Perform accounting, cash, and financial break-even analyses. Use Ch 11 excel templates and adjust as needed. 1. What is the break-even quantity for each analysis? 2. Which break-even analysis is the most important? Why? 1 2 of 3 600 words English (United States O Focus MacBook Air 20 000 000 F3 y MuUE ave Case 4 Directions Pro Eva WALL Sp21 References Mailings Review View Tell me Draw Share Layout Design calibri AA AAS EE21 Dictate Styles Styles Pane The annual revenues are based on selling 4,000 machines at a price of $17,500 each. The annual expenses include $10,000,000 of fixed costs and $4,000 of labor per machine and $3,500 of raw materials cost per machine. Tax rate is 25% Perform a scenario and a sensitivity analysis. Use Ch 11 excel templates and adjust as needed, Unit sales are expected to vary by plus or minus 5%. Prices are expected to vary by plus or minus 5%. Unit costs are expected to vary by plus or minus 10%. Fixed costs are expected to vary by plus or minus 10%. 1. Should the company approve the project? Why? Describe any limitations of these analyses. 2. After performing the sensitivity analysis, which are the two most risky variables? 3. What do you recommend regarding these variables? Why? Part 3. Break-even Analysis Use the updated assumptions from Part 2 Perform accounting, cash, and financial break-even analyses. Use Ch 11 excel templates and adjust as needed. 1. What is the break-even quantity for each analysis? 2. Which break-even analysis is the most important? Why? 1 2 of 3 600 words English (United States O Focus MacBook Air 20 000 000 F3