Data table references:

Question 1 Profit Maximization Standard Boxes ( obtain from Project 2) FC / per month 12 Quantity Boxes sold per month Price Revenue Total Costs VC /unit VC Daily profit (revenue -all Annual Revenue Annual VC 5 (millions) $ 22.00 $ (FC+VC) Annual FC 110.00 $ costs Annual Total 10 $ (millions (millions) 5.5 10 $ (millions) $ 50.00 $ Costs (millions) Annual Profit 21.60 $ 118.80 $ 60.00 $ 10 $ 50.00 $ 55.00 $ 1,320 $ 21.20 $ 10 $ 600 $ 65.00 $ 120 $ 720 $ 600 127.20 $ 10 $ 53.80 $ 1,426 $ 6.5 $ 60.00 $ 20.80 $ 10 $ 660 $ 70.00 $ 120 $ 780 $ 57.20 $ 65.00 $ 1,526 $ 646 7 135.20 $ 10 $ 20.40 $ 10 $ 720 $ 75.00 $ 120 $ 840 $ 686 142.80 $ 10 $ 70.00 $ 60.20 $ 1,622 $ 10 $ 780 $ 120 $ 7.5 S 20.00 $ 150.00 $ 80.00 $ 62.80 $ 900 $ 722 8 10 $ 75.00 $ 1,714 $ 840 $ 19.60 $ 10 $ 85.00 $ 120 $ 960 $ 10 $ 65.00 $ 1,800 $ 754 156.80 $ 80.00 $ 10 $ 900 $ 8.5 1,020 $ 780 19.20 $ 90.00 $ 120 $ 163.20 $ 10 $ 18.80 $ 85.00 $ 56.80 $ 10 $ 1,882 S 960 $ 95.00 $ 120 $ 68.20 $ 1,080 |$ 1,958 $ 802 1,020 $ 120 $ 9.5 169.20 $ 10 $ 90.00 $ 10 $ 18.40 $ 174.80 $ 100.00 $ 10 $ 69.20 $ 2,030 $ 1,140 $ 818 10 $ 1,080 $ 120 5 1,200 $ 830 18.00 $ 95.00 $ 10.5 180.00 $ 105.00 $ 10 $ 100.00 $ 69.80 $ 10 5 2,098 $ 110.00 $ 1,140 $ 120 $ 1,260 $ 838 17.60 $ 184.80 $ 10 $ 70.00 $ 105.00 $ 2,160 $ 10 $ 1,200 $ 120 5 1,320 5 840 17.20 $ 189.20 $ 115.00 $ 10 $ 69.80 $ 110.00 $ 2,218 $ 16.80 $ 10 $ 120.00 $ 1,260 $ 120 5 1,380 5 69.20 $ 838 2,270 $ 1,320 |$ 120 $ 1,440 $ 12 193.20 $ 10 $ 115.00 $ 16.40 $ 10 $ 125.00 $ 196.80 $ 10 $ 120.00 S 68.20 $ 330 10 $ 2,318 $ 130.00 $ 1,380 $ 120 $ 1,500 $ 818 12.5 16.00 $ 13 200.00 $ 10 $ 125.00 S 66.80 $ 2,362 $ 10 $ 135.00 $ 1,440 $ 120 $ 65.00 $ 1,560 $ 302 15.60 $ 13.5 202.80 $ 10 $ 130.00 $ 10 S 2,400 $ 15.20 $ 205.20 $ 140.00 $ 1,500 $ 120 $ 10 $ 62.80 $ 1,620 $ 780 2,434 $ 1,560 $ 14 135.00 $ 10 $ 145.00 $ 120 $ 14.80 $ 207.20 $ 10 $ 60.20 $ 1,680 $ 140.00 |$ 10 5 2,462 $ 754 150.00 $ 1,620 $ 120 $ 57.20 $ 1,740 $ 2,486 $ 722 1,680 $ 120 $ 1,800 $ 686Profit Maximization Deluxe Boxes 12 Deluxe boxes sold per month Revenue (price x Variable Cost per Variable Cost (millions) Price Fixed cost per Total Cost Daily Profit (revenue - all volume standard box (cost per unit x volume) month (millions) (Fixed + Annual Revenue Annual VC Variable) costs Annual FC Annual Total Annual Profit 1 30.00 $ 30.00 $ millions) 10 $ (millions) 10.00 $ (millions) Costs (millions) (millions) 1.2 3 $ 29.50 $ 35.40 $ 13 $ 17.00 10 $ 360 12.00 120 36 3 $ 15 $ 4,320 3,960 1.35 29.00 $ 39.15 $ 20.40 10 $ 425 5,184 1.5 13.50 $ 144 36 3 $ 17 $ 4,759 28.50 $ 42.75 $ 10 $ 22.65 470 15.00 $ 162 36 3 $ 5,832 1.55 28.00 $ 43.40 $ 18 $ 5,362 24.75 10 $ 15.50 $ 513 180 3 S 36 6,480 1.6 27.50 $ 19 $ 5,967 44.00 $ 24.90 521 10 $ 16.00 $ 186 36 3 S 19 $ 6,696 25.00 6,175 1.65 27.00 $ 44.55 $ 10 $ 6.50 $ 528 192 36 3 5 6,912 6,384 1.7 26.50 $ 20 $ 45.05 $ 10 $ 25.05 535 17.00 $ 198 1.75 3 5 36 26.00 $ 45.50 $ 20 $ 7,128 6,593 10 5 25.05 17.50 $ 541 204 3 $ 21 $ 36 7,344 5,803 1.8 25.50 $ 45.90 $ 25.00 546 10 $ 18.00 $ 210 36 1.85 3 5 25.00 $ 21 $ 7,560 7,014 46.25 $ 24.90 551 3 5 7,776 7,225 1.9 10 $ 18.50 $ 216 36 24.50 $ 46.55 $ 22 5 24.75 10 $ 555 19.00 $ 222 36 7,437 1.95 3 5 24.00 $ 46.80 5 22 $ 7,992 10 5 24.55 559 19.50 $ 3 $ 228 36 23 $ 8,208 24.30 7,649 2 23.50 $ 47.00 $ 10 5 562 20.00 $ 234 36 3 $ 23.00 $ 23 $ 3,424 7,862 2.05 47.15 $ 24.00 564 10 $ 20.50 $ 240 3 5 36 3,640 8,076 2.1 22.50 $ 47.25 $ 24 $ 23.65 2.15 10 $ 566 21.00 $ 246 3 5 24 $ 36 8,856 23.25 B,290 22.00 $ 47.30 $ 10 $ 567 252 36 9,072 8,505 2.2 21.50 $ 3 $ 21.50 $ 25 $ 47.30 $ 22.80 10 5 568 258 2.25 22.00 $ 3 $ 25 $ 36 9,288 8,720 21.00 $ 47.25 $ 10 S 22.30 22.50 5 568 3 S 264 36 9,504 8,936 21.75 567 270 36 9,720 9,153The manager is concerned about the massive reduction in profit from the Sustainable Deluxe Boxes but realizes that because of the change in materials, they will no longer be able to charge the price of $18 per box. The manager wants to achieve at least the same profit percentage for the deluxe boxes as they have on standard boxes. How much additional profit are they requiring? Complete the grey spaces. Required profit See Tab 3 Less: Existing profit See Q 1 above Equals: Difference in additional profit requiredThe sustainability manager is concerned about the long term sustainability implications of Deluxe boxes on the environment and suggest changing to sustainable materials for the production of a Sustainable Deluxe Box. If the company switch es to their current quantity of Deluxe Boxes sold to Sustainable Deluxe Boxes there will be some cost implications. The Sustainable Deluxe Boxes could be made cheaper, and the sustianability manager believes that the company could bring down the selling price to $15 per box which would entice current Deluxe Box customers to accept the switch over. The new Sustainable Deluxe Boxes will attract 60% of total fixed costs calculated for the Deluxe Boxes under the ABC method. The number of boxes sold will not be affected by this new selling price, as the company will in future have to do marketing to sell more boxes at the lower price. Calculate the new Gross profit and profit percentage. Complete the grey spaces Standard Boxes Sustainable Deluxe Total Quantity 108.00 13.00 125.00 Sellin price per unit $ 18.80 1.5 $ 33.80 Sales 5 2,030.40 210.\") 5 2,311.40 VC 5 1,030.\") 130.\") 1,250.\") Contribution $ 950.40 90.00 1,040.41) Fixed Costs $ 6.0!) $ 6.0!) $ 12.9!) Profit 5 944.40 84.\") 5 1,-.40 G P 'K: 45.51% 31. 11% 77.52%