1) A brewery plans to produce bottles that they sell for $7.50. Their monthly overhead costs have been calculated to be $28,750 per month and the variable cost to produce each is $3.90. Their monthly capacity is 30,000 bottles. Show all values for all calculator entries IE: PFT=?, FC=?, Q=?, etc.

a) Calculate the break-even point in units. (3 marks)

b) Calculate the break-even revenue. (2 marks)

c) Calculate the break-even point as a percent of capacity. (2 marks)

d) How many bottles do they need to sell to guarantee a net profit of $10,000 a month? (2 marks)

e) What is the profit when operating at 80% of capacity? (2 marks)

f) The company knows it can sell 24,000 bottles at a price of $7.50, but would also consider operating at 90% of capacity and selling their beer for $7.25 / bottle. Which would you recommend as the best option for the company in terms of profit (fixed costs and variable costs remain unchanged)? (4 marks)