I need help with the section "required B"

- | Integrative Case 5-72 (Algo) Cost Estimation, CVP Analysis, and Decision Making (LO 5-4,5,9) Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and begon marketing a new chewing gum Bubbs. to sell in vending machines. The product, which seils for $6.00 per case, has not had the market success that managers expected and the company is considering dropping Bubbs The product line income statement for the past 12 month follows: $ 34,704,650 wenge Costs Manufacturing costs Allocated corporate costs (9) Product line murin Allowance for tax 890) Product-line profit Closs) $ 14,447,095 235,233 $ 25,103, 120 (478,478) 95,695 382,783) 5 All products at Lake receive an allocation of corporate overhead costs, which is computed as 5 percent of product revenue. The 5 percent rate is computed based on the most recent year's corporate cost as a percentage of revenue Data on corporate couts and revenues for the past two years follow Corporate Corporate Overea conta Most recent year $ 121,750,000 $ 6,067,500 Previous year 77,700,000 5,19,50 Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you os financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the following data on product costs for Bubbs Cases Production costs 1 222.000 11,161,340 224,700 1,135,640 3 222,4 1,194,493 4 249,000 1.210.035 210.45 1.212,309 6 2522000 2 254,700 1.200,210 1,251,28 9 24,300 1,249,738 le 260,150 2.261,837 257,700 266,272 12 1.233. 223, Required: a. Bunk Stores has requested a quote for a special order of Bubbs. This order would not be subject to any corporate allocation and would not affect corporate costs What is the minimum price Mr. Andre can offer Bunk without reducing profit any further b. How many cases of Bubbis does Luke have to sell in order to break even on the product? c. Suppose Luke has a requirement that all products have to earn 5 percent of sales after tax and corporate allocations or they will be dropped. How many cases of Bubbs does Me Andre need to sell to avoid seeing Bubbs dropped d. Assume all costs and prices will be the same in the next year. If Lule drops Bubbs, how much will Luke's profits increase or decrease Assume that fed production costs can be avoided if Bubbs is dropped Complete this question by entering your answers in the tabs below. Required A Required B Required Required How many cases of Bubbs does tke have to sell in order to break even on the product? (Round Variable cost percentage to 2 decimal places, fixed costs to whole dollar amount and profit per case to decimal places for intermediate calculations. Round your final answer up to the nearest whole unit) Nutcase .