You are in the business of making and selling Bogus Bovine Wasteproducts BBWs Each BBW sells for $ and you have the following manufacturing costs:
Direct materials consist of $ of unrefined Bovine Wasteproduct for each BBW
Direct labor costs of $ per BBW
Defamation liability insurance costs $ per BBW
Rent is $ per year
Miscellaneous administrative costs are $ per year
Political bribes are $ per year
A How many BBWs do you need to make and sell per year to breakeven?
B If you buy a better grade of unrefined BW for $rather than $ you can reduce your annual political bribe cost to $ from $ How many BBWs do you need to make and sell per year to breakeven if you choose this option?
C You think you can sell between and BBWs each year. What income will you make under the higher bribe lowerunrefinedBE $ cost option if you sell BBWs
D What income will you make under the lower bribe $higherunrefinedBE $ cost option if you sell BBWs
E What income will you make under the higher bribe $lowerunrefinedBE $ cost option if you sell BBWs
F What income will you make under the lower bribe higherBS $ cost option if you sell BBWs