Problem: Write a memo to the general manager explaining your analysis for the specialty spark plug project.
Include the following information:
Present the NPV and IRR calculated for the purchase of new equipment (Phase 3 task 1).
Explain the effect of a sales volume increase on the total fixed costs, unit fixed costs, total variable cost, and unit variable cost.
Discuss the effect of a volume increase in sales, a price increase in sales, and a cost decrease on the net operating income.
Calculate the payback period for the new equipment project.
Make a recommendation about the manufacture of the specialty spark plug and purchase of new equipment.
Attachment:- Project Les Winget.rar