Complete the following:
- Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
- Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
- Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.
Prepare a minimum 500-word informal memo to management addressing Mary’s suggested changes.
- Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.