Exercise 15 Damian Wills and Company sells canisters of cinnamon-, peppermint- and mango-scented air fresheners. The company has annual fixed costs of $780 000. Last year, the company sold 15 000 canisters of its air fresheners in the ratio of 1:2:2. Wills' accounting department has compiled the following data related to the three air fresheners: Price per canister Variable costs per canister Cinnamon Peppermint Mango $22.00 $30.00 $34.00 12.00 24.00 32.00 REQUIRED a Calculate the total number of canisters that must be sold for the company to break even. b Calculate the number of canisters of Cinnamon, Peppermint and Mango that must be sold to break even. How might Damian Wills and Company reduce its break- even point? Exercise 19 Dev Hagen started his company, Proactive Electronic Signs, after graduating from university three years ago. While earning his engineering degree, Dev became intrigued by all of the electronic signs he saw around the city and he surprised his friends by starting the company. Dev is currently considering introducing a new custom electronic signage product that he believes will sell like hotcakes. In fact, he estimates the company will sell 14 000 of the signs. The signs are expected to sell for $150 and require variable costs of $50. Proactive Electronic Signs has annual fixed costs of $600 000. REQUIRED a How many signs must the company sell to break even? b How many signs must be sold to earn a profit of $30 000? If 14 000 signs are sold, how much profit will Proactive Electronic Signs earn? d What would be the break-even point if the sales price decreased by 20 per cent? Round your answer to the next-highest number. e What would be the break-even point if variable costs per sign decreased by 40 per cent? f What would be the break-even point if fixed costs increased by $100000