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Selling Price = $29.00 1,500 5.500 Fixed Cost $ 23, eee 23,eee 23,eee 33, Bee 33,00 33,000 43,000 43,000 43,000 Variable Cost 5 6 7

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Selling Price = $29.00 1,500 5.500 Fixed Cost $ 23, eee 23,eee 23,eee 33, Bee 33,00 33,000 43,000 43,000 43,000 Variable Cost 5 6 7 5 6 7 5 6 $ 13,000 11,500 1e,eee 3,000 1,500 Sales Volume 2,500 3,500 4,500 Profitability $37,000 $61, eee $85,000 34,500 57,500 80,500 32.000 54,000 76,000 27.ee 51 , 75,000 24,500 47,500 70,500 22,000 44,000 66,000 17,000 41,000 65,000 14.See 37,500 60,500 12,000 34,000 56,000 $109,000 103,500 98,000 99,000 93,500 88,000 89,000 83,500 78,000 (7,000) (8,500) (10,000) Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point b. Determine the expected profit if Adams projects the following data for Delatine: sales, 3.500 bottles, fixed cost, $23,000; and variable cost per unit, $7 c. Adams is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $5 if it agrees to conditions that will increase fixed cost to $33,000 Volume is expected to remain constant at 3,500 bottles. Determine the effects on the company's profitability of this opportunity is accepted

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