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Please show work. Thank you Daily Dose, Inc. creates daily vitamin packs. They currently have one product, the All Is Well blend of vitamins. The
Please show work. Thank you
Daily Dose, Inc. creates daily vitamin packs. They currently have one product, the All Is Well blend of vitamins. The fixed cost for producing these vitamins is $346,605. The firm currently sells these vitamin packs for $3.04/pack. They spend $1.53 in variable costs per unit. During the year, the firm produces and sells 480,000 units. Round all calculations to the nearest hundredth (two decimal places). 1. Calculate the firm's break even point in dollars. Breuk Even Point in Dollars | 2. Calculate the degree of operating leverage for the firm. Degree of Operating Leverage 3. Calculate the effect (% change) on operating income that a 35% change in units sold will cause. Percent Change in Operating Income 4. If the fimm decided to increase the selling price per unit, what would happen to the break-oven point? OA. It will decrease. OB. It will stay the same. OC. It will increase. OD. I cannot tell from the information given. 5. The fimm is considering moving Its sales force from salaries (totalling $125,000 per year) to sales commissions. The new commission planned is $0.64/unit. What will be the resulting change in the break even point for the firm? O A. Break-even point will decrease. O B. Break-even point will increase. OC. Break-even point will not change. D. I cannot calculate the change with the information cilvenStep by Step Solution
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