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Breakfast Inc. produces oatmeal. It currently sells the oatmeal in 10 Ib boxes of oatmeal last year at a variable cost of $12 per box

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Breakfast Inc. produces oatmeal. It currently sells the oatmeal in 10 Ib boxes of oatmeal last year at a variable cost of $12 per box (variable). Fixed costs were $100,000. (a) Calculate the break-even point in dollars for oatmeal . boxes at $20 per box. Breakfast Inc. produced 160.000 Breakfast Inc. is considering getting into flavoured oatmeal in place of the unfavoured variety they currently produce. Flavoured oatmeal is sold in 5 lb. boxes, so Breakfast Inc. would produce twice as many boxes of flavoured than traditional. Market research suggests boxes of flavoured oatmeal would sell at $12 per 5 lb. box. Variable costs to fliavour the oatmeal are expected to be $1 per 5 Ib. box. There are no additional fixed costs (b) Calculate the total cost per box of flavoured oatmeal $ per 5 lb. box (c) Calculate the incremental increase (or decrease) to operating income if Breakfast Inc. were to make flavoured oatmeal in place of regular.$

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