# Image Transcription --- 274,563 cases. This issue contrasts from necessity (i), in light of the fact that the prerequisite that the income from the item takes care of the creation costs and the full 5% corporate expenses designation makes the corporate expense portion no doubt factor. Subsequently, the quantity of cases to give a benefit equivalent to 5% of income (= $X x 35.23 x Q) still up in the air as follows. Allow Q to be the quantity of cases sold. Benefit equivalent = 5 % Then, profit for Q cases is: Profit: Working Notes: Profit = Revenues – Variable product costs – Variable corporate costs – Fixed production costs Profit = $5.25 x Q - $2.24 x Q - $7 x 35.23 x Q = $682,294 [($5.25 x Q) - ($2.24 x Q) - ($2.24 x Q) - ($7 x 35.23 x Q)] – $682,294 82.45% x Q = 682,294 Q = 827,563 cases. $235,314 increase. Since fixed assembling expenses can be stayed away from, Luke will save all the creation costs in addition to the variable corporate above. | Lost revenue | $(14,682,150) | |-------------------------------|----------------| | Production costs avoided | $4,440,395 | | Savings before corporate costs | $(10,241,755) | | Corporate costs avoided | = 3.65% x $14,682,150 ($535,895) | | Increase profits before tax | $2,239,143 | | Tax (30%) | $(671,743) | | Increased profits | $1,567,400 | Expanded benefits for the most part connote that a business or venture is performing better monetarily contrasted with a past period. This improvement could come from different variables, for example, expanded income, diminished costs, further developed proficiency, ventured into new business sectors, fruitful item dispatches, or viable expense the board techniques. ---