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need help with all of this question. i have the original solved but not with the 30% decrease which makes fixed costs double. if more info is needed i can provide

year 3 is the same numbers as year 4

this is the original problem i solved down below thats correct i believe if any reference numbers is needed

the original numbers are posted on the bottom. there is only 1 question go be solved clearly

2) New Plant? The company is considering construction of a new automated manufacturing plant, the new plant would slash variable expenses by 30% but would cause fixed expenses per year to double. Haas still plans to produce and sell the same number of units in Year 4 (base). a) If the new plant is built, what would be the company's new (1) contribution margin per unit, (ii) fixed expenses and (ii) the new profit formula? Complete the table below. 1) New CM per unit ii) New Fixed expenses iii) New profit formula New Break-even New Year 4 Units Sales Revenue NOI Note: Check figures must be supported to earn credit for grading purposes. a) Assume Haas sells the same units as planned for Year 4 in the new plant, calculate the new margin of safety in ()units) (ii) dollars and (iii) percent. Has margin of safety improved or declined? Explain/comment in 10 to 30 words. i) MoS units ii) MoS dollars iii) MoS percent Note: Check figures must be supported to earn credit for grading purposes. b) Calculate the degree of operating leverage. Has operating leverage improved or declined from the "base" calculation in 9)? Discuss in 10 to 30 words. c) If you were a member of top management, would you have been in favor of constructing the new plant? Explain in 10 to 30 words Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year : Fixed manufacturing overhead Fixed selling and administrative expenses 23 15 6 1 $ $ 240,000 $ 180,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $52 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 3. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. BBB VICON even pullit III UIT saic 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1 Year 2, and Year 3. 3. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3A Req 3B Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost $ 48.00 $ 47.20 $ 50.00 ( Req 2B Req3B > e) If Haas Company plans to produce and sell 90,000 units, how much can they expect their shipping costs to be for the period? Using historical data for future decisions: Assume the information for Years 1, 2 and 3 from CONNECT now represent historical experience. Haas Company can use this information to consider operational changes for Year 4. For Year 4 assume Haas Company will produce and sell the same number of units as they sold in Year 3 from your CONNECT problem (given data). Remember when a company sells the same number of units they produce, product costs equal product expenses and there will be no change to inventory values 5) Use the variable costing information (given and results) from CONNECT to provide the information required below. Express Net Operating Income in a formula like that used on page 196 of your text. Profit=(unit CM X ) - Fixed Expenses. Remember to SHOW YOUR WORK!!! a) Sales price per unit b) Variable Expense per unit 645 (include S&A!!) c) Contribution margin per unit 52-4527 d) Contribution margin percentratio 7/52 X 100 15.46% e) Contribution margin in dollars 1) Profit formula NOI-Profit -_70-400,000 where the first blank is the CM per unit LEDOON IS $7 punt > 455,000 and the second blank is Fixed Expenses Note: Check figures must be supported to earn credit for grading purposes. Profit=765000 - 24000D +180.000) = 35.000 A0000 6) Complete the table below assuming the indicated number of units were produced and sold. Remember to include S&A variable expenses in your variable expenses. Units Sales Variable Fixed Total produced/sold Revenue Expenses Expenses Expenses Profit/NOI 0 420.000 UZAZOVO 20,000 10 40000 90000D 4202000 132.1.000 40,000 20 0000 18 000 00 00 000 222.0000 M DOOD 60,000 3120000 2.700000 4207000 3120000 O 80,000 10000 3600 000 ya 12000 4104000 140000 Note: Check figures must be supported to earn credit for grading purposes. 7) Review pages 223 and 224 from the textbook. Prepare a Cost-VolumeProfit graph for Haas Company. a) Use the graph attached; label both the x and y axis using appropriate increments. Dollar values should be used for the y axis and number of units for the x axis. b) Plot the Fixed Expense line. Label it. c) Plot the Sales Revenue line and label it. d) Plot the Total Expense line and label it. e) Indicate the Break-even Point on the graph and label it. 1) Shade and label the portion of the graph that indicates the company's positive profit Base Year calculations: In order for Haas Company to consider any alternatives, they must first understand their current or "baseposition. Break-even, Margin of Safety and Degree of Operating Leverage are 3 criteria that can indicate the company's current situation. Use Haas's anticipated Year 4 information for these "base year" calculations. 8) Margin of Safety evaluates the company's position compared to "break-even". Use the information from 6) above and your CONNECT problem to summarize the information in the table below. Calculate the Margin of Safety in (a) dollars (b) units and (c) percent for Year 4. Remember, Haas Company produces and sells the same number of units in Year 4 that they SOLD in year 3. Units Sales Revenue NOI Break-even Base Year 4 60.000 651000 $3/1201000 $3,380TCCO $ 35,000 $200.000 3/380 000 - 3,120,000 = 200.000 5,000 units 65.000-60/000 (MOS *100)/ Breaker revne a) MoS dollars b) MoS units c) MoS % Note: Check figures must be supported to earn credit for grading purposes. (2601000*100)/$ =5337 9) Calculate the Degree of Operating Leverage for Year 4, assuming nothing else changes. Contribution Muran NOL $455.000/$35.000 113 Looking at changes: Look at each situation below independently as a change to the "base" position. 10) Changing sales price: The new marketing director believes that Haas Company can sell more units of its product if they lower their sales price by 5% per unit. a) Calculate the new (1) sales price and (ii) contribution margin per unit. i) new sales price ii) CM per unit iii) What will the new Profit formula be? b) How many units will they need to sell to make the same operating income (NOI) as originally projected for year 4 (base assumption)? Note: Check figures must be supported to earn credit for grading purposes

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