You are in the business of making and selling Bogus Bovine Wasteproducts $($BBWs$).$ Each BBW sells for

$$150,000$ and you have the following manufacturing costs:

Direct materials consist of $$500$ of unrefined BW for each BBW

Direct labor costs of $$100,000$ per BBW

Defamation liability insurance costs $$29,500$ per BBW

Rent is $$130,000$ per year

Miscellaneous administrative costs are $$70,000$ per year

Political bribes are $$1,200,000$ per year

A$.$ How many BBWs do you need to make and sell per year to breakeven?

$\frac{27800000}{32000}=8$ units

B$.$ If you buy a better grade of unrefined BW for $$3,000($rather than $$500),$ you can reduce your

annual political bribe cost to $$937,500$ from $$1,200,000.$ How many BBWs do you need to make

and sell per year to breakeven if you choose this option?

$\frac{137500}{386000}=29$ units

C$.$ You think you can sell between $80$ and $110$ BBWs each year. What income will you make under

the higher bribe $($$$1,200,000)/$lower$-$unrefined$-$BE cost $($$$500)$ option if you sell $80$ BBWs$?$

$(3200030)=960,000$ NCt incom$=$

fixed cost $=1400000$

D$.$ What income will you make under the higher bribe $($$$1,200,000)/$lower$-$unrefined$-$BE cost $($$$500)$

option if you sell $110$ BBWs$?$

E$.$ What income will you make under the lower bribe $\frac{\text{\$}937,500}{?}$ higher$-$unrefined$-$BE cost $($$$3,000)$

option if you sell $80$ BBWs$?$

F$.$ What income will you make the lower bribe $\frac{\text{\$}937,500}{?}$ higher$-$unrefined$-$BE cost $($$$3,000)$

option if you sell $110$ BBWs