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The results indicate (see appendix 1) that 100,000 additional units of bar soap at $1.4 per unit are required to reach the break-even point. Using the current price of perfume soap the quantity needed to reach the break-even surpasses the capacity of the line by 204,000 units (more than double!).
With this analysis we can conclude that the company should revise bar and perfume volumes and prices because the current ones are not generating any profit. In fact, these lines are being subsidized entirely by the profit of the liquid soap. We will include an entire section with recommendations for improving profitability at the end of the report...
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