As part of Cam Bowles Soup Company, Camilla Parker-Bowles has launched a new product Camilla Water Biscuits, they are sold as Camilla Crackers in the United States. Camilla Crackers are high end crackers made with premium white flour harvested in the United Kingdom, premium butter, and British spices. The quality symbol ensures that the "water biscuits" do not break from production facility to dinner table. The crackers pair nicely with the four British Soups of Camilla's line and many of the eight other soups that make up Cam Newton's soup line.

Camilla Crackers have the following costs that are not variable: Facilities Expense = $2,680,000, Insurance Expense = $1,880,000, License, Fees and Taxes Expense = $995,000, Salaries Expense = $3,210,000.

Variable cost per unit = 55%

The selling price per unit = $37 per case

20 boxes of crackers are in one case

A. Create a basic income statement from the above information on Camilla Crackers at break-even units.

B. If the variable cost was decreased by 5% what is the new-break even amount of boxes?

C. If the fixed costs were increased by $777,777 what is the break-even amount of boxes?*

D. If the target profit was 15%. How many cases would be need to be sold to achieve their goal?*

* the unit contribution margin is the same % in parts C & D as part A.