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Libra, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics: Required a. What number must Libra sell

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Libra, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics: Required a. What number must Libra sell per month to break even? b. What number must Libra sell per month to make an operating profit of $100,000? c. Assume that the company plans to sell 600,000 units per month. What will the operating profit be based on the numbers in the table above? d. Assume that the company plans to sell 600,000 units per month, and that the sales price mentioned in the above table increases by 20%. What will the operating profit be? The variable cost per unit of $0.20 remains the same and the fixed costs do not change. e. Assume that the company plans to sell 600,000 units per month, and that the variable costs per unit decreases by 10%. What will the operating profit be? The sales price of $1 remains the same and the fixed costs do not change. Simpson Corporation manufactures thermostats for office buildings. The following is the cost of each unit (thermostat): Andreasen Company has approached Simpson Corporation with a special order to buy 7,500 thermostats at a price of $60 each. Simpson's regular selling price is $100. Simpson has the capacity to produce the 7,500 additional units without affecting its current production of 100,000 units, so the fixed costs will not change; however, the Andreasen special order will require a one-time rental of packaging equipment for $20,000 (an additional cost for Simpson Corporation). Also, Andreasen requires that each unit of the special order use the Andreasen branding, which requires a more expensive label. This will result in an additional $2 per unit material cost for the special order. The labor cost of putting the label will be the same as for the current models. Required a. Prepare a schedule to show the impact of filling the Andreasen order on Simpson's profits for the year-ie show in detail how much will the profit be the special order is accepted versus the status quo. b. Would you recommend that Simpson accept the order? Please explain why

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