Factory Mills makes granola bars, cereal, yogurt, ice cream, and many other food products. Suppose the product manager of a new Factory Mills cereal has determined that the appropriate wholesale price for a carton of the cereal is $37. Fixed costs of the production and marketing of the cereal is $5.3 million. Requirements 1. The product manager estimates that she can sell 300,000 cartons at the $37 price. What is the largest variable cost per carton that Factory Mills can pay and still achieve a profit of $1 million? 2. Suppose the variable cost is $21 per carton. What profit (or loss) would Factory Mills expect? Requirement 1. The product manager estimates that she can sell 300,000 cartons at the $37 price. What is the largest variable cost per carton that Factory Mills can pay and still achieve a profit of $1 million? Determine the basic formula to compute target income that you will then rearrange to calculate the largest variable cost per carton. Target sales Variable expenses Fixed expenses = Target income The largest variable cost per carton that Factory Mills can pay and still achieve a profit of $1 million is $ per per carton.