A soft drink manufacturer in the Midwest opened a new manufacturing plant. The total fixed costs are $100 million. It plans to sell its soft drinks for $6 for a package of 6 cans. The variable costs are $4 per package.
What is the breakeven volume?
Fixed costs increased by $50 million. What is the new breakeven volume?
Fixed costs are $100 million. What is the breakeven volume if variable costs are reduced to $3 per package?
Using the original cost data, what would the breakeven volume be if the firm wanted a $20 million profit?