• The delivery price is based on long term contracts.
• The price of the supply of cardboard has increased due to a .15 fuel surcharge added to the cost.
• Carl has a fixed monthly cost of $257,000 and delivers 3.3 million packages in the same time for a price of $3.24.
• The variable cost of the previous package was a $1.37.

• At what volume was the old break-even and what is the new break-even?
• In order to make the same profit how many more packages needs to be produced?

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price of the supply of cardboard has increased due to a .15 fuel surcharge added to the cost.
Carl has a fixed monthly cost of $257,000 and delivers 3.3 million packages in the same time for a price of $3.24.
The variable cost of the previous package was a $1.37.