This assignment is Required to be completed using Excel all calculations must be reflected in your spreadsheet.

1)

a. What is the breakeven in units?

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b. The margin of safety in unit for:

i. 2016

ii. 2017

iii. 2018

2) A new piece of manufacturing equipment is being considered for purchase. this machine is projected to reduce total cost of goods sold 18% (based on 2018 actual results) and have a useful life of 5 years. If the machine cost $2,500,00 should it be purchased? Explain

3) The company has calculated that 40% of the variable cost of goods sold are attributable to direct materials, and 60% of the variable cost of goods sold are associated with direct labor. What is the direct materials cost per item 2018?

 
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