STEP $05$: Use the data from Step $03$ to analyze various scenarios.

$=SP(Q)-VC(Q)-TFC$

Where:

$=$ Profit

$SP=$ Sales Price $($Use $$16\mathrm{.}83$ per case$)$

$Q=$ Quantity

VC $=$ Variable Cost per unit

TFC $=$ Total Fixed Costs

Using the facts you know, what is Celestial Seasonings Break$-$Even sales volume? $($Set profit $($i$.$e$.,=0$ and solve for $Q)$

What are some conclusions we can make about Celestial Seasonings sales of tea in each quarter? Does the data of when the high and low sales occur fit in with your expectations of when the sales should occur? Why? What are some options that Celestial Seasonings might use to even out the fluctuations in their sales? What opportunities might exist to increase sales in the quarters or months that typically have lower sales?