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The company is considering ways to improve profitability by either stimulating sales volume or reducing variable costs. ThereProblem: Big Al Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has ha3. (25 pts) Create a copy of the Question 1 worksheet. Rename this copy Question 3. Using the Question 3 worksheet, constructInputs Response: Unit Sales Price Annual Fixed Cost Unit Variable Cost Quantity Made and Sold Calculations and Outputs Annual

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Alternative 1 Alternative 2 (Sales increased (Variable cost by 35%) decreased by 20%) $32 $32 $95000 $95000 $16 $12.8 Unit sa3 Profit Quantity 5000 Sales 160000 320000 - 15000 10000 65000 480000 145000 15000 20000 640000 800000 960000 25000 30000 VarProfit 1200000 1000000 800000 600000 1025000 945000 865000 785000 705000 625000 545000 Profit 465000 385000 305000 225000 145

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