CVP Analysis and Special Decisions Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. The most recent year's sales revenue was $4.200,000. Variable costs were 60 percent of sales and fixed costs totaled $1,300,000. Sweet Grove is evaluating two alternatives designed to enhance profitability . One staff member has proposed that Sweet Grove purchase more automated processing eq Fin strategy would increase fixed costs by $200,000 but decrease variable costs to 54 percent of sales. Another staff member has suggested that Sweet Grove rely more on outsourcing for fruit proce costs by $200,000 but increase variable costs to 65 percent of sales would reduce fixed Round your answers to the nearest whole number. (a) What is the current break-even point in sales dollars? $3,250,000 (b) Assuming an income tax rate of 36 percent, what dollar sales volume is currently required to obtain an after-tax profit of $700,000? s 5,984375 (c) In the absence of income taxes, at what sales volume will both alternatives (automation and outsourcing) provide the same profit? $ 5,143,940x (d) Briefly describe one strength and one weakness of both the automation and the outsourcing alternatives Automation has less risk and a lower break-even point. Outsourcing has higher profits if sales increase Automation has higher profits if sales increase and a lower break even point. Outsourcing has less risk Automation has less risk. Outsourcing has higher profits if sales increase and a lower break-even point. Automation has higher profits if sales increase. Outsourcing has less risk and a lower break-even point. Check