1) Gourmet Coffee Company sells a single product. Gourmet Coffee estimates demand and costs at various activity levels as follows:

Units SoldPriceTotal Variable CostsFixed Costs

120,000$48$3,000,000$1,000,000

155,000$45$3,550,000$1,000,000

160,000$40$4,000,000$1,000,000

180,000$35$4,500,000$1,000,000

200,000$30$5,000,000$1,000,000

How much profit will Gourmet Coffee have if a price of $45 is charged?

*Round to two decimal places.

2) The Flashy Umbrella Company is considering production of a glow in the dark umbrella that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the umbrella will be $66 per unit and fixed costs per year will be $240,000.

*Assuming sales of 1,200 units, what is the full selling price of an umbrella with a 0.30markup?

*Round to two decimal places.

3) Pottery Company believes it can sell5,300,000 of its proposed new pots at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the pots. If the company desires to make a profit $2,000,000 on the pots, what is the target variable cost per pot?

*Round to two decimal places.