The breakeven volume was 1474691 packages and California Containers Division needs to sell 495000 packages more to achieve the same profits.
Volume for Old Break-Even
Fixed Cost = $257000
Variable cost = (1.37*3300000)
= $4521000
BE Volume = (4521000+257000)/3.24
= 1474691 packages
Net Profit for Previous Scenario
Fixed Cost = 257000
Variable Cost = 4521000
Revenue = 10692000
Profit = $5914000
Additional packages Needs to be sold = 495000
Thanks
XYZ
Like other empirical studies in corporate finance, this thesis is subject to several limitations and my results should be treated with caution. Future research on shareholder activism should tackle these issues in order ...