# Transcription of the Image --- b. 242,120 cases. To breakeven on the item, Luke needs to offer an adequate number of cases to take care of fixed creation costs on the item. The commitment edge, notwithstanding, is brought down by the variable part of the (genuinely) corporate expenses. To decide these, we can utilize the High-Low strategy, since we just have two perceptions. Corporate expenses are thought to be variable concerning incomes, so utilizing information on corporate expenses, variable expenses are 3.65% of income. ## Variable cost: ### Working Notes: Variable cost = (Cost at highest activity – cost at lowest activity) / (Highest activity – lowest activity) = ($5,387,500 – $4,221,000) / ($106,750,000 – $76,200,000) = 3.65% of Revenue Let Q be the number of cases sold. Then, profit for Q cases is (note that the fixed costs are from the analysis in part a): ## Profit: ### Working Notes: Profit = Revenues – Variable product costs – Variable corporate costs – Fixed production costs = ($5.25 × Q) – ($2.24 × Q) – (3.65% × $5.25 × Q) – $682,294 = $2.813 × Q – $682,294 = Q = 242,120 cases. Benefit regularly alludes to the monetary profit acknowledged when the income produced from a business or speculation surpasses the costs and expenses related with working or effective money management. ---