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Q 1 . Evergreen Fertilizer Company produces fertilizer. The company s fixed monthly cost is $ 2 0 , 0 0 0 and its variable

Q1. Evergreen Fertilizer Company produces fertilizer. The companys fixed monthly cost is $20,000 and its variable cost per pound of fertilizer is $1. Evergreen sells the fertilizer for $6 per pound. Determine the following:
a. Use the analytical method and determine the breakeven volume for the company?
b. Also find the breakeven in dollars.
c. If the company incurs an advertising expenditure of $144,000 per year, what effect will the change have on the breakeven volume?
d. If the company sells 3,000 pounds, what will be the profits/losses?
e. If the company wants to earn a profit of $40,000 how much fertilizer should the company sell?

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