Question: Prepare a break even and sensitivity analysis using: 1. Cash flow and 2. Present value of cash flow. Compare the two results and explain to

Prepare a break even and sensitivity analysis using: 1. Cash flow and 2. Present value of cash flow. Compare the two results and explain to a CEO in a follow up memo explaining why computing break even is important for capital budgeting.

Fixed Costs $25,000
Direct Labor 100
Direct materials 75
Shipping 25
Sales Commission 50
Total VC/unit 225
Price per unit 500

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