. At a price of $10.95 per gallon, what will be the DOL (assume 23000 gallons are sold , that $94400 above fixed costs is to be earned, and that other costs are as initially given)(show your calculations). IceLess is an anti-icing solution sold in gallon plastic jugs.  It is poured into the windshield washer bottle of your car.  Wash your windshield and the solution prevents the glass from icing over for about four hours.  Production incurs the following fixed and variable costs.  It is priced initially at $5.50 per gallon. Fixed costs (per year)                        Variable Costs per gallon    Rent: $18000                                   Glycol: $1.50    Utilities: 13200                                FreezeFree 312: .50    Managerial salaries: 20000            Mfg labor: .20    Flammability  permit: 12000           Packaging: .20    Other fixed expense:  2400            Inert ingredients: .60    Total fixed: $65600                        Advertising: .30                                                                       Total: $3.30

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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6. At a price of $10.95 per gallon, what will be the DOL (assume 23000 gallons are sold , that $94400 above fixed costs is to be earned, and that other costs are as initially given)(show your calculations).

IceLess is an anti-icing solution sold in gallon plastic jugs.  It is poured into the windshield washer bottle of your car.  Wash your windshield and the solution prevents the glass from icing over for about four hours.  Production incurs the following fixed and variable costs.  It is priced initially at $5.50 per gallon.

Fixed costs (per year)                        Variable Costs per gallon

   Rent: $18000                                   Glycol: $1.50

   Utilities: 13200                                FreezeFree 312: .50

   Managerial salaries: 20000            Mfg labor: .20

   Flammability  permit: 12000           Packaging: .20

   Other fixed expense:  2400            Inert ingredients: .60

   Total fixed: $65600                        Advertising: .30

                                                                      Total: $3.30

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