Price indifference point analysis Bricker Pharmaceuticals currently sells its multiple vita- mins for $5 per bottle and sells 200,000 bottles a year. At that price the company realizes a profit on the product of $50,000. Fixed cost associated with the product is $250,000. Bricker management is thinking about increasing the price of the vitamins to $6 per bottle. If the price is not increased management believes the current sales and profit levels will be maintained.

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REQUIRED a. Compute the variable cost of a bottle of vitamins. b. Compute the price indifference point for the price increase. c. If Bricker management implements the price increase and sales decline to 115,000 units, what is the impact on company profits?