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in the 2nd question in the picture it cut so the next text is (will...

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Accounting

in the 2nd question in the picture it cut so the next text is (will improve the company operating profit)

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Question 6 (20 points) Demijohn Ltd Pty. manufactures narrow-necked bottles. In 2022, the company sold 10,000 bottles for $10 each; the fixed costs were $25,000 and the variable cost of each bottle was $3. There is an expectation the fixed costs will increaseby 10% in 2023, therefore, for offsetting the costs, the general manager of Demijohn Ltd Pty. has decided to increase the price of the bottles in 2023 to $11. The number of bottles sold and the variable cost are expected to remain the same in 2023. Required: i. Compare the breakeven points in 2022 and 2023 and explain if the price increase offsets the fixed costs increase in 2023. (10 marks) ii. Given the expectations for 2023, the general manager is considering an Activate advertising campaign that would cost $50,000 and double the number of bottles sold in 2023. Identify if such an advertising campaign will improve the

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