Use Exhibit 3.3 shown in the body of the chapter to answer the following questions.
a. Determine the mix of sales volume, fixed cost, and variable cost per unit required to produce a desired profit of $82,000.
b. Determine the expected profit if Bright Day projects the following data for Delatine: sales, 5,000 bottles; fixed cost, $30,000; and variable cost per unit, $12.
c. Bright Day is considering new circumstances that would change the conditions described in Requirement b. Specifically the company has an opportunity to decrease fixed cost to $20,000 if it agrees to conditions that will increase variable cost to $13. Volume is expected to remain constant at 5,000 bottles. Determine the effects on the company’s profitability if this opportunity is accepted.