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Carol, the owner of BKW is concerned about the local supermarket prices for similar products which are about $0.08 per quart lower than BKW. To address competition from local supermarkets, Carol is considering the following: 1. lower sales price by $0.05 per quart, 2. accepting a special holiday order for eggnog 3. switching from glass bottles to recycables cardboard packaging or 4. eliminate one or more of the products.

Assuming BKW chooses to lower sales prices for each product line by 0.05 per quart, what would be the breakeven in units and dollars by product line?

Whole Milk Low-Fat Milk Chocolate Milk Sales price per quartS Capping and finishing process Separation process Contribution margin per quart S Depreciation on milking machine Rent for the building Capping and finishing process enance General and administration support Quality control and inspection Customer service and order taking Whole Milk Low-Fat Milk Chocolate Milk 18900 Total 39400 x Contribution margin per quart S Total contribution margin $ 11032 2457 19000 Operating income (loss) S Carol, the owner of BK W, is concemed about the locall supermarket prices for similar products which are abour 59 08 per quart lwer than BKW To address competition from local supermarkets, Carol is considering the owering sales prises by $o o5 per quart, (2) accepting a special holiday order for eggnog3) switching from glass boles to recyclable candboard packaging, and or (4) elininating one or more of the products Required prie"-rekh preduct In. b, Seas per quar. what would be the breakeves in .ait" and dollar, b, product line? A NK" the artober. Whole Milk Low-Fat Milk Chocolate Milk Sales price per quartS Capping and finishing process Separation process Contribution margin per quart S Depreciation on milking machine Rent for the building Capping and finishing process enance General and administration support Quality control and inspection Customer service and order taking Whole Milk Low-Fat Milk Chocolate Milk 18900 Total 39400 x Contribution margin per quart S Total contribution margin $ 11032 2457 19000 Operating income (loss) S

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