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1. Using the statements in Exhibit 2, compute the contribution margin per unit and total fixed costs for Nyiano Enterprises. Prepare a Contribution Margin Based Income Statement for 2023. 2. Compute the breakeven point (BEP) in units and Ghanaian cedis (GH), margin of safety (MOS) in orders and Ghanaian cedis (GH), and degree of operating leverage (DOL) for Nyiano Enterprises. 3. Compute the BEP, MOS in orders and GH, and DOL of the Tamale fulfillment center if Nyiano Enterprises adds a fulfillment center in Tamale. Comment on your findings. 4. Compute the number of orders necessary to make the target return on investment (ROI) and profit before tax (PBT) in the Tamale center (see Exhibit 2). Is this a reasonable goal? 5. Agatha is considering increasing advertising by 5m GHS in the Northern Region to make the new fulfillment center viable. How would an increase in advertising impact the BEP of adding a new fulfillment center? Comment on whether increasing advertising may be a good decision. 6. As the Northern Region is underserved, Agatha is considering reducing average prices by 30 GHS per order in the Northern Region to make the fulfillment center viable. How would a price decrease impact the BEP and MOS of the fulfillment center in Tamale? Market research suggests orders are likely to increase 15% if prices are reduced by 30 GHS per order. How would reducing prices impact the PBT? Comment on your findings. 7. Agatha is considering outsourcing the fulfillment center function to another company in Tamale. How would outsourcing in Tamale impact the profitability (PBT) in the Northern Region? 8. Make recommendations for Nyiano Enterprises. Should Nyiano Enterprises open a new fulfillment center in Tamale, outsource in Tamale or continue to only ship to the Northern Region? Also, consider the advertising and price reduction options. Should Nyiano consider the impact on the environment in its decisions

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