Assignment:
Suppose that marketing executives for Touché Toiletries (see problem 7) reduced the price to $6.50 for a three-ounce bottle of Ode d’Toade and the fixed costs were $1,100,000. Suppose further that the unit variable cost remained at 45 cents for a three-ounce bottle.
(a) How many bottles must be sold to break even?
(b) What dollar profit level would Ode d’Toade achieve if 200,000 bottles were sold?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.