U5. Responsibility Center

**Apa format, no grammer errors. Everything must be perfect and as indicated below. Must be on time. No plagiarism.

**3–4 pages (not including title and reference pages)

Incorporate the following into assignment:

You received an email from Carl the operations manager from the California Container division. They produce packaging for cell phones. Carl understands that his product is an important cash producer for the company.

  • 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 period for a price of $3.24.
  • The variable cost of the previous package was a $1.37.

develop an email with following information to Carl:


1] Contribution calculations with the Selling Price of $3.24 and the variable cost of $1.37; 30 points

[2] Revised Contribution calculations when the price increased due to a .15 fuel surcharge added to the cost; 30 points

[3] Old break-even

[4] New break-even

[5] Profit before the increase in price due to the fuel surcharge

[6] New volume in order to make the same profit

[7] Email format  5 points

[8] References at the end

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