A soft drink manufacturer opened a new manufacturing plant in the Midwest. The total

fixed costs are $70 million. It plans to sell soft drinks for $6.00 for a package of 10 12-

ounce cans to retailers. Its variable costs for the ingredients are $3.00 per package.

a. Calculate the break-even volume.

b. What would the break-even be if the firm wanted to make $22 million in profit?

c. What would happen to the breakeven point if the fixed costs decreased to $61

million?

d. What would happen to the breakeven point if the variable costs increased to $3.50

due to increases in commodity costs (with fixed costs of $61 million)?