Q Project 3: Costing and Cost Allocations Step 5: Prepare the Analysis Report for Project 3 You have developed an in-depth understanding of LGI's operating efficiency related to costing and the impact on EBITDA. You feel confident that your target revenue combined with a better mix of fixed and variable costs will positively boost LGI’s productivity, providing the company with a competitive edge. LGI will finally be on a path toward a sustainable future. Answer the questions in the Project 3 Questions – Report Template document. Prepare your analysis report including recommendations for how the company can improve its financial situation. Complete the analysis report for the project: • Download the Project 3 Questions – Report Template • Read the instructions. • Answer all the questions. • Include your recommendations. • Submit the analysis report (Word document) and analysis calculation (Excel file) to the Assignments folder as your final deliverable at the end of Week 6. Label your files as follows: o P3_Final_lastname_Report_date.docx o P3_Final_lastname_Calculation_date.xlsx Check Your Evaluation Criteria Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them. To view the complete grading rubric, click My Tools, select Assignments from the drop-down menu, and then click the project title. • 3.1: Identify numerical or mathematical information that is relevant in a problem or situation. • 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution. • 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data. • 10.3: Determine optimal financial decisions in pursuit of an organization's goals. • 10.5: Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions. Take Action Submit your assignment to your instructor for review and feedback. Follow these steps to access the assignment: • Click My Tools in the top navigation bar. • Click Assignments. • Select the relevant assignment. Project 3 Questions – Report Template Instructions: Answer the five questions below. They focus entirely on improving the EBITDA of Largo Global Inc. (LGI) based on the information provided in the Excel workbook. Provide support for your reasoning from the readings in Project 3, Step 1, and the discussion in Project 3, Step 3. Be sure to cite your sources in APA 7th ed. style. Provide a detailed response below each question. Use 12-point font and double spacing. Maintain the existing margins in this document. Your final Word document, including the questions, should not exceed 5 pages. Include a title page in addition to the five pages. Any tables and graphs you choose to include are excluded from the five-page limit. Name your document as follows: P3_Final_lastname_Report_date. You must address all five questions and make full use of the information on all tabs. You are strongly encouraged to exceed the requirements by refining your analysis. Consider other tools and techniques that were discussed in the required and recommended reading for Project 3. This means adding an in-depth explanation of what happened in the year for which data was provided to make precise recommendations to LGI. ? Title Page Name Course and section number Faculty name Submission date ? Questions: 1. How much of the fixed costs were allocated between the Standard and Deluxe Boxes based on the Lumpsum Analysis Method? Is the CEO correct that the Deluxe Box is not contributing much to company operating profit? Please elaborate on your answer and include evidence from Tab 1 of the Excel workbook. [insert your answer here] 2. The intern suggested splitting the costs, as you have done in the calculations performed in Tab 2, based on sales volumes. Explain the impact of calculation performed in Tab 2. In your discussions, please elaborate on why the answer has changed from the calculations you performed in Tab 1. Also indicate the benefit of accurate costing when trying to improve operating profit margins. [insert your answer here] 3. Based on the calculations in Tab 3 using ABC, comment on the operating profits made for each product. Explain in your report why operating profits have changed under ABC analysis. Also indicate which of the systems – that is the traditional systems (using lumpsum or volume-based cost allocation in Tab 1 and Tab 2) or the ABC systems, (Tab 3) provide the best answers for decision making to improve cost management in order to improve operating profit. [insert your answer here] 4.The sustainability manger is concerned about the Anti-Deluxe Action group’s impact on the company and suggested that materials and process of making the Deluxe Boxes should be changed. As the process of making the Sustainable Deluxe Boxes, will be less intensive, a suggestion is made that the selling price for the Sustainable Deluxe Boxes could be $23 per unit. Discuss whether changing the price to $23 is a viable option for LGI? Provide evidence from the Excel workbook, Tab 4. [insert your answer here] 5. If Largo Global Inc. decides to sell the Sustainable Deluxe Boxes at the price the CEO demands to maintain the same profit percentage as for Standard Boxes do you think the new price calculated in Tab 4 is a viable option? Why is it important for LGI to know what their Breakeven quantity is? Also indicate which other (non-numerical information) should be considered when deciding to pursue the Sustainable Deluxe Box option. [insert your answer here]