7. Suppose fixed costs research and development, production equipment, and nonrecurring introductory advertising and distribution expenses for a new cake mix are estimated to be $80,000 per year. If the item sells for $10.00 per case and variable costs of labor and materials are $5.50 per case. Compute the breakeven volume. 2 b. If the expected annual demand on a facility is $18 million in products per year and the design capacity is $14 million per year. What is the capacity cushion? 8. If a firm has a demand of $16 million in products per year but can produce only $12 million per year. What is the capacity cushion? b. The demand rate for an air conditioning starter capacitor is 18,000 per year. The regional distribution center estimates average inventory levels at 600. Based on this average inventory level, what is the annual inventory turn rate? 9. Suppose that X is a random variable equal to property losses from hurricane and that Y has the following Probability distribution: $90,000 with a probability of 0.02 X= $10,000 with a probability of 0.06 $0 with a probability of 0.02 What is the expected value of hurricane losses or expected? 10. Suppose that A is a random variable equal to profits from a hotdog stand at the beach, and D has the following probability distribution: $90,000 with a probability of 0.05 $70,000 with a probability of 0.25 A = $50,000 with a probability of 0.35 $14,000 with a probability of 0.20 -$14,000 with a probability of 0.15 What is the expected value of profits?