llowing questions. De it required to produ D La mayor y expres -12% Cameras CVP Analysis B/ own in the body of the chapter to answer the following gu data for Delatine: sale Determine the mix of sales volume, fixed cost an fixed cost, and variable cost per unit reg da por 62.000 d riat Day projects the following data Med and anable cost per unit, $12. ions described in cost to $20,000 ected to remain A profitability if this dering new cumstances that would change the conditie h at the company has an opportunity to decrease fiy to auditions that will increase variable cost to $13. Volume is a r co hottles Determine the effects on the company's profit c opportunity is axpted ananne changes in fired and variable cost UL, du levisLU PROIBITIV numbers PU INSTRUY TIC. By changing the vari- ables, management can get a real feel for the sensitivity of profits to changes in cost and volume. Investigating a multitude of what if possibilities involving simultaneous changes in fixed cost, variable cost, and volume is called sensitivity analysis. After reviewing the spreadsheet analysis, Bright Day's management team is con- vinced it should undertake radio advertising for Delatine. Only under the most dire circumstances (if actual sales are significantly below expectations while costs are well above expectations) will the company incur a loss. EXHIBIT 3.3 Spreadsheet Report to Facilitate "What-if" Analysis lumeregn 28-512). 875) Selling Prices 28.00 Fared Cost While Variable Cost 2.000 And Sales Volume is 3,000 4,000 5,000 Then Profitability w Be 5,000 $ 20,000 20,000 20,000 30.000 30,000 30,000 40,000 40,000 40,000 $14,000 12,000 10,000 4,000 2,000 . 16.000) 18,000) (10,000) $31,000 28.000 25.000 21.000 18,000 15,000 11.000 8.000 5,000 $40.000 44.000 40.000 38.000 $4,000 30,000 28.000 24,000 20,000 $65.000 60.000 55.000 55.000 50,000 45,000 45.000 40,000 35,000 $2,000 75.000 20.000 72,000 66,000 60,000 62.000 56,000 50,000 Wys margin of safety expressed as a percentage. Exercise 3-12B Comprehensive CVP Analysis, BT Use Exhibit 3.3 shown in the body of the chapter to answer the following questions, Required a. Determine the mix of sales volume, fixed cost, and variable cost per unit required to produce a desired profit of $82,000. b. Determine the expected profit if Bright Day projects the following data for Delatine: sales 5,000 bottles; fixed cost, $30,000; and variable cost per unit, $12. c. Bright Day is considering new circumstances that would change the conditions described in Requirement b. Specifically the company has an opportunity to decrease fixed cost to $20,000 if it agrees to conditions that will increase variable cost to $13. Volume is expected to remain constant at 5,000 bottles. Determine the effects on the company's profitability if this opportunity is accepted