In the PDF file, it has the three questions with intructions listen in the beggining. Please answer those questions based on insturctions in a word document. You do not need to include the questions in the document. All you have to do is labe the answers based on the question so my professor knows which part you are answering. I am willing to also include lecture powerpoints from the professor to make it easier in answer the questions.

OPTION #2: COMPARATIVE COST-VOLUME-PROFIT ANALYSIS CALCULATIONPhil Lesley, Controller, would like to complete a comparative cost-volume-profit analysis for the current year over the prior year for the chewing gum manufacturing plant to determine if the breakeven point was achieved, and how it may have differed between the two years.Specific costs for production of 400,000 units each year, include the following:2017 - Current YearChewing Gum Manufacturing Division CostsVariable Costs TotalFixed Costs TotalRaw materials$ 250,000Direct manufacturing labor$ 110,000Indirect manufacturing labor$ 42,500Factory Insurance & Utilities$ 35,000Depreciation — Machinery and factory$ 48,500Repairs and maintenance —factory$ 8,000Selling, marketing, and distribution expenses$ 10,000$ 30,000General and administrative expenses$ 50,0002016 - Prior YearChewing Gum Manufacturing Division CostsVariable Costs TotalFixed Costs TotalRaw materials$ 245,000Direct manufacturing labor$ 105,000Indirect manufacturing labor$ 50,250Factory Insurance & Utilities$ 33,750Depreciation — Machinery and factory$ 38,500Repairs and maintenance —factory$ 14,000Selling, marketing, and distribution expenses$ 10,000$ 25,000General and administrative expenses$ 60,000There is no beginning or ending inventories. The total sales for 400,000 units produced are $1,050,000 for 2016 and $1,200,000 for 2017.Using Microsoft Excel, answer the following questions for each year given the fact pattern above, showing all supporting calculations and labelling answers clearly. Please refer to CSU-Global Library (Links to an external site.)Links to an external site. for Lynda.com tutorials on using Microsoft Excel or use the Excel Tutorials link found in the classroom if you need assistance.What is the contribution margin per unit for each multipack of gum produced given the fact pattern above?What is the breakeven point in units and dollars given the fact pattern above?What is the division’s margin of safety and degree of operating leverage given the fact pattern above?Create a very simple Excel table summarizing answers of each computation for each year. *Below the table in Excel, please write at least 3 observations you have regarding the data comparisons/contrasts.Responses should be in complete sentences utilizing proper grammar. Your paper must be formatted according to CSU-Global Guide to Writing and APA Requirements (Links to an external site.)Links to an external site..

Part 3: Can We Upgrade?It’s now 2020, and El Cap Climbing Company (ECCC) has continued to grow. One of ECCC’s major revenue-producing products is a spring-loaded camming device called SLCD, or cams. It’s a device with a small handle (called the “trigger”) and two spring-loaded “cams” on an axle. When the trigger is pulled, the cams move together, decreasing the size of the cams. It’s then inserted into a crack or pocket in the rock. When the trigger is released, the cams expand. These cams are used as anchors when “trad” rock climbing.ECCC currently has one set of cams on the market, and sales have been excellent. The cams are lighter and perform better than their competitors'. However, as with any high-performance item, technology changes rapidly, and the cams are now falling behind the competition.ECCC spent $200,000 to develop a prototype for a new line of cams that has all the features of the existing cams but are made from an even lighter and stronger 7075-T6 aluminum alloy. The company has spent a further $150,000 for a marketing study to determine the expected sales figures for the cam line.ECCC can manufacture a set of the new cams for an average of $140 each in variable costs. Fixed costs for the operation are estimated to run an additional $2.1 million per year if the new project is undertaken. The estimated sales volume is 75,000, 85,000, 80,000, 70,000, and 65,000 per year for the next five years, respectively. The unit price of the new cam set will be $240. The necessary equipment can be purchased for $10.5 million and will be depreciated on a seven-year MACRS schedule. It’s believed the value of the equipment in five years will be $1.1 million.Production of the current cam line is expected to be terminated in two years. If ECCC doesn’t introduce the new line of cams, sales will be 45,000 units and 25,000 units for the next two years, respectively. The price of the cam set is $150, with variable costs of $95 each, and fixed costs of $1.5 million per year. If ECCC does introduce the new cams, sales of the existing product will fall by 10,000 units per year, and the price of the existing sets should be lowered to $120 each. Net working capital for the cams will be 22 percent of sales and will occur with the timing of the cash flows for the year; for example, there’s no initial outlay for NWC, but changes in NWC will occur in Year 1 with the first year’s sales. ECCC has a 30-percent corporate tax rate and a required return of 10 percent. (Note: You can create the solutions in the same Excel spreadsheet that has the data report information. Be sure to let the instructor know if you choose to do this instead of creating them in a Word document.)Leah has provided you with a data report in an Excel spreadsheet that contains information to answer the following questions:What’s the payback period of the project?What’s the profitability index of the project?What’s the IRR of the project?What’s the NPV of the project?Should Leah accept the project?If Leah needs to adjust the price of the product, what’s the lowest Leah could make the price of the new cam set and still have a positive NPV project (keeping all other assumptions the same)?