Amy Lewis is the Director of Marketing for CompuSale, and is producing a sales forecast for a new line of paper products. The divisional manager has been gathering data so that he can choose between two different production processes. The first process would have a variable cost of $10 per case produced and total fixed cost of $100,000. The second process would have a variable cost of $6 per case and total fixed cost of $200,000. The selling price would be $30 per case. Amy had just completed a marketing analysis that projects annual sales of 30,000 cases, however she is reluctant to report the 30,000 forecast to the divisional manager. She knows that the first process would be labor intensive, whereas the second would be largely automated with little labor and no requirement for an additional production supervisor. If the first process is chosen, Sam Adams, a good friend, will be appointed as the line supervisor. If the second process is chosen, Sam and an entire line of laborers will be laid off. After some consideration, Amy revises the projected sales downward to 22,000 cases. She believes that the revision downward is justified. Since it will lead the divisional manager to choose the manual system, it shows a sensitivity to the needs of current employeesa sensitivity that she is afraid her divisional manager does not possess. He is too focused on quantitative factors in his decision making and usually ignores the qualitative aspects.

Based on the above information, calculate the following:

a. Break even point in units for each process

b. The sales volume at which the two processes have the same profitability as eachother

c. The range of sales that the automated process is more profitable than the manual process

d. The range of sales that the manual process is more profitable than the automated process