# Ingrid is planning to expand her business by taking on a new product. She can purchase the new product at

## Question:

Ingrid is planning to expand her business by taking on a new product. She can purchase the new product at a cost of \$8. To market this new product, she would need to spend \$984 on advertising each month. The suggested retail price for the product is \$14, but she is not sure if she should price her product at this amount. Answer each of the following independent questions.
(a) If she chooses a price of \$14, how many units does she need to sell to break even?
(b) If she chooses a price of \$12, how many units does she need to sell to break even?
(c) If she spends \$1500 on advertising, and keeps the price at \$14, how many units does she need to sell to break even?
(d) If she estimates that she can sell 300 units when she spends \$1500 for advertising, what is the lowest price she should charge and still break even?

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