Problem 2 Seprod Manufacturing makes aluminum cans. The following cost and price data apply to the company's operations Sales price per can is $28.00 Variable cost is $12.00 per can The fixed cost is $30,000. The company has a desired profit of $40,000 Instructions 1) Write the equation for the fixed cost line (curve). Explain what it means 2) Write the equation for the revenue curve. Explain what it means 3) Write the equation for the total cost curve. Explain what it means. 4) Write the equation for break-even units and solve. 51 What is the break even revenue? Show your calculations 6) Develop a CVP graph. Make sure your break-even on the graph matches your calculation a. In developing your graph, pick same key points. The equatlons developed above can help you in this regard Calculate the desired number of units necessary to achieve a desired profit of $40,000. What is the margin of safety-in other words, by how much can sales decrease before the company runs into financial trouble? Show calculations. The marketing manager believes that reducing the sales price to $25.00 and increasing fixed cost by $12,000 to $42,000 will increase profitability, Is he correct? 7) 81 9) a. Compute break even units b. Compute break-even in sales dollars c. Construct a CVP graph. Use graph pager te: Unless your work is neat, it will n ed. No late submission will be accepted