##### Question You are evaluating whether to add a vegan burger line in Year 1. Use the following assumptions (m = million): - Fixed training cost: $60m/year - Supplier retainer: $2.25m/month (fixed) - Vegan patty + ingredients variable cost: $2 per burger - Selling price: $5 per vegan burger - Expected sales volume: 120m burgers in Year 1 1. Compute the Year-1 incremental operating profit, defined as revenue − variable costs − fixed costs (the no-launch baseline is $0). Be sure to pro-rate the monthly retainer to a full year. 2. Decompose the result into its fixed versus variable components and express it in contribution-margin terms (per-unit contribution, contribution margin ratio, total contribution). 3. Compute the breakeven unit volume for the vegan burger line and interpret it. 4. Run a sensitivity check: if expected sales volume comes in at ±10% versus plan, what is the new incremental profit in each case?