6. A soft-drink manufacturer has opened a new manufacturing plant in Perth. The total fixed costs are
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6. A soft-drink manufacturer has opened a new manufacturing plant in Perth. The total fixed costs are $100 million. It plans to sell soft drinks to retailers for $6 for a package of 10 × 350 mL cans. Its variable costs for the ingredients are $4 per package. Calculate the break-even volume. What would happen to the break-even point if the fixed costs decreased to $50 million or the variable costs decreased to $3 due to declines in commodity costs? What would the break-even point be if the firm wanted to make $20 million?
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Marketing
ISBN: 9781760423889
3rd Edition
Authors: Dhruv Grewal, Michael Levy, Shane Mathews, Paul Harrigan, Tania Bucic, Foula Kopanidis
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