c) Management is now proposing that they remove the mango trees and replace them with macadamias. The estimated volume of macadamias is expected to increase to 240,000kg after 5 years while the avocadoes will remain unchanged. The cost of this change is expected to be $100,000 but the corporate costs are expected to be reduced permanently to $120,000 each year. Also, because it takes several years for new macadamia trees to produce. There will be no change in the sales volume of macadamias for the next year. Assume average prices and variable costs also remain unchanged for several years but the annual fixed costs for macadamias will increase to $150,000 immediately. ) Calculate next year's expected profit. (4 marks) Answer: Calculate the expected profit in 5 years' time when the new macadamia tres reach full production (4 Marks Anwer c) Management is now proposing that they remove the mango trees and replace them with macadamias. The estimated volume of macadamias is expected to increase to 240,000kg after 5 years while the avocadoes will remain unchanged. The cost of this change is expected to be $100,000 but the corporate costs are expected to be reduced permanently to $120,000 each year. Also, because it takes several years for new macadamia trees to produce. There will be no change in the sales volume of macadamias for the next year. Assume average prices and variable costs also remain unchanged for several years but the annual fixed costs for macadamias will increase to $150,000 immediately. ) Calculate next year's expected profit. (4 marks) Answer: Calculate the expected profit in 5 years' time when the new macadamia tres reach full production (4 Marks Anwer