IntroductionTime has warped again, which gives me the opportunity to use cost, volume, and profit analysis to develop a new plan for next four years. The strategy is to maximize profit for the Clipboard Tablet Company for the next four years. After accessing the strategy from 2012 to 2015, we will calculate the variable cost, variable cost per unit, contribution margin, contribution margin per unit, contribution margin ratio, dollar break-even point of sales and break-even point in units sold to fine-tune our strategy. Below is the strategy matrix with decisions made year by year based on pricing and R&D allocations. Year-by-Year Decisions: R&D Pricing and Allocations 2012 2013 2014 2015X5 Price - $275 Price - $275 Price - $275 Price - $275 % R&D - 15% R&D % - 10% R&D % - 5 % Research and Development % - 5%Stop? Don't interrupt? Don't interrupt? Don't interrupt? Yes Don't interrupt? Don't interrupt? Don't interrupt? NoX7 Price - $190 Price - $175 Price - $175 Price - $175 % Research & Development - 51% % Research & Development - 51% % Research & Development - 56% % Research & Development - 85% Discontinue? Don't interrupt? Don't interrupt? Don't interrupt? NoBelow is the year-over-year evaluation using CVP analysis: Old Strategy Analysis In the year-over-year comparison from 2012 to 2014, there were no changes to the variable costs per unit for any of Clipboard Tablet Company's models, in 2015 there were no Changes have been made to variable costs per unit for the X6 and X7 models, the X5 model has been discontinued. The contribution margin ratio for the X5 remained the same from 2012 to 2015, but the contribution margin ratio for the of contribution of the X7 has dropped... half of the document ......research and development of the model transferred to the X7 model. Conclusion The rationale for reducing the cost of the X5 model in 2012 is to maximize sales while the product is in the growth phase and flood the market earlier. The fixed cost of the X5 model is double the fixed cost of the X6 and X7 models. Another variable in this decision was that the X5 model would soon reach the phase-out phase of the life cycle. The decision to eliminate the research and development of the X5 model and transfer it to the X6 model is to increase the market shares of the X6 model as the X5 model reaches the phase-out phase. From 2014 to 2015, we decided to slowly reduce R&D of the X6 model and increase R&D of the X7 model to generate performance that competes with other products. As the X7 was being introduced, the decision was made to increase R&D to maturity, we also reduced the price of the X7 model to increase market shares.