Problem 1
Camillere Industries has given you the following data for current operations:
	Sales volume		60,000	units
	Sales price		$30.00	per unit
	Variable production costs
	Direct materials		3.50	per unit
	Direct labor		7.00	per unit
	MOH		3.50	per unit
	Variable selling costs		1.00	per unit
	Fixed production		250,000
	Fixed selling & admin costs		450,000
What is the profit formula for Camillere Industries?
What is the breakeven point (in units)?
What is their current profit?
Management expects that costs will rise next year as follows:
	Direct material	10%
	Direct labor	15%
	Variable MOH	20%
	Variable sellling	20%
	Fixed costs	5%
Assuming the sales manager believes that the sales prices could be raised no more than 10%,
	how many units would they have to sell to achieve a pre-tax profit of $250,000
	given the expected increase in costs?
Assume instead that the sales manager believes that the demand could not be increased
	beyond 60,000. What would the sales price need to be to achieve the $250,000
	profit given the expected increase in costs? (Round to two decimals.)
Problem 2
Franco's is considering adding a new flavored soda to its popular line of soft drinks.
	Details for new product:
		Selling price per case	$75.00
		Variable cost per case	36.00
		Fixed costs related to the new product	12,168,000
	How many cases does Franco's need to sell to break even?
	How many cases do they need to sell to earn $1,872,000 per year after taxes?
	(Their tax rate is 40%)
Problem 3
Langley's has decided to produce two models of briefcases:
		Executive	Luxury	Total
	Selling price per bag	$ 70.00	$ 100.00
	Variable cost per bag	30.00	40.00
	Expected sales per year	8,000	12,000	20,000
	Fixed costs are expected to total $819,000
What is the anticipated level of profits given the expected sales volumes?
Assuming that the sales mix is the same at the breakeven point, compute the number of
	Executive and Luxury briefcases that need to be sold to break even.
		# of Executive briefcases
		# of Luxury briefcases