Cost Details:Fixed Costs:Manufacturing: $800,000Administrative: $400,000Variable Costs per Unit:Direct Materials: $30Direct Labor: $20Requirements:Conduct a sensitivity analysis...

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Accounting

Cost Details:

  • Fixed Costs:
    • Manufacturing: $800,000
    • Administrative: $400,000
  • Variable Costs per Unit:
    • Direct Materials: $30
    • Direct Labor: $20

Requirements:

  • Conduct a sensitivity analysis for changes in variable costs (increase/decrease by 10%).
  • Calculate the impact on total costs and profitability.
  • Present the analysis in a detailed table format.
  • Discuss the implications of cost structure changes on pricing strategy.

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