A jewelry manufacturer has determined the expense equation for necklaces to be E = 1,250q + 800,000,

Question:

A jewelry manufacturer has determined the expense equation for necklaces to be E = 1,250q + 800,000, where q is the quantity demanded. At a particular price, the breakeven revenue is $2,600,000.
a. What is the quantity demanded at the breakeven point?
b. If the breakeven revenue changes to 3.5 million, will the quantity demanded have increased or decreased? Explain.