(1) (a) Given TR = TC + TNI where TR is total revenue TC is total cost and TNI

(1) (a) Given TR = TC + TNI where TR is total revenue TC is total cost and TNI is target net prove Q* = (FC + TNI) / CM/u where Q* is the number of units to
produce and sell FC is fixed cost and CM/u is contribution margin per unit. Develop other symbols or equations as needed for your proof. (b) Define operating
leverage and margin of safety and defend which of these two measures is superior for management.

(2) Management wishes to pursue CVP analysis vigorously for its overall planning. How would the general formula specified in (1) above be modified for
consideration of targeting net income and for multiple products? What are the constraints and limiting assumptions underlying the valid use of CVP? Which are
the most important and why?

(3) Management has approached you to assist in identifying alternative models or tools to CVP and help evaluate whether such alternatives may be superior in
guiding their planning. You believe that ROI and Residual income may be helpful. Compare and contrast these three approaches and conclude with the single best
of approach with full defense for your selection.