ALL COMPUTATIONS MUST BE SHOWN FOR POINTS. NO POINTS FOR ANSWERS ONLY. 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 $75,000 per year. If the item sells for $6.00 per case and variable costs of labor and materials are $3.50 per case. Compute the hreakeven volume. b. If the expected annual demand on a facility is $10 million in products per year and the design capacity is $12