You received an email from Carl the operationsmanager from the California Container division. They produce packaging for cellphones. Carl understands that his product is an important cash producer for thecompany.The delivery price is based on long term contracts. The price of the supply of cardboard has increaseddue to a .15 fuel surcharge added to the cost. Carl has a fixed monthly cost of $257,000 anddelivers 3.3 million packages in the same time period for a price of $3.24. The variable cost of the previous package was a$1.37.Provide the following information to Carl in anemail At what volume was the old break-even and what isthe new break-even? In order to make the same profit how many morepackages needs to be produced?
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