In: Finance
Breakeven Analysis
A. Calculate the breakeven (with profit) volume given the information below. Create an income statement proving your calculated volume produces the desired profit. What will happen to profit if actual volume is 10 cases more than breakeven volume? AVC = $2,500 TFC = $1,200,000 Profit = $100,000 Price = $4,320
B. Calculate breakeven volume if total fixed cost increases by 8%.
C. Calculate breakeven volume if average variable cost increases by 5% with the original (part A) TFC.
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