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This year, Babc fixed costs total $110 000. The business sells recyclable one-litre thermos drink...

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Accounting

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This year, Babc fixed costs total $110 000. The business sells recyclable one-litre thermos drink containers for $13 each. The variable cost per container is $8. (a) Compute the break-even point in number of containers. (b) Compute the number of containers that Babco must sell to earn a profit of $70000. (c) If the total fixed cost increases to $150 000 next year: i. what will be Babco's break-even point in containers? ii. what will be Babco's break-even point in containers? iii. what profit (or loss) will Babco have if it sells 28 000 containers? iv. how many containers will Babco need to sell to earn a profit of $70 000

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