Use the below table to answer the following questions. Selling price = $28.00 Required: a. Determine the
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Selling price = $28.00
Required:
a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point.
b. Determine the expected profit if Bright Day projects the following data for Delatine: sales,4,000 bottles; fixed cost, $20,000; and variable cost per unit, $13.
c. Bright Day is considering new circumstances that would change the conditions describes in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $11 if it agrees to conditions that will increases fixed cost to $30,000, Volume is expected to remain constant at 4,000 bottles. Determine the effects on the company's profitability if this opportunity is accepted.
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