1.Ignore any current plans.Using last year's actual data and sales mix, how many total cases would David need to sell in order to earn $80,000 before tax?How many cases of each of the four labels would TM need to produce?

Exhibit 3 Root Beer Cost Information Panel A: Alternative 1 roduce inhouse Direct materials per case Direct labor - - r ca5e 1variable overhead per ca5e Total variable costs per case Additional fixed coats per vear not including the initial purchase oost of the machine Panel B: Afternative 2 out-Source production Purchase :rioe l -rca5e Variable overhead per case Total variable costs u er case Additional fixed coats - er - r