Golf Town, a company that markets golf equipment and accessories, is considerinc introducing a new gadget that repairs marks on golf balls. The company's owner, Fiona Haugom. is confident that her cost estimates are accurate. but she is not so sure abou the accuracy of her sales estimates. If she decides to introduce the product. Ms Haugom will allocate $5.000 of her company's fixed costs to it. Labour and material wil be $0.5 perunit.

1. Ms. Haugom estimates that 10,000 units can be sold next summer. She wants to make 30 percent profit per unit. What price should she charge
2. What is the break-even volume at the price vou just calculated?

c What will the profit be at it the expected number of sales is achieved?

d. Ms. Haugom thinks her competition may be introducing a similar product. If
that happens. she could lose a signiticant number of sales. in the worst case, she would sell only 6,000 units. What would her profit be at 6,000 units?