Melinda and Morris sell soft drinks at basketball tournaments. They charge $2 per can. The cost to

Question:

Melinda and Morris sell soft drinks at basketball tournaments. They charge $2 per can. The cost to purchase the soft drinks is $0.60 per can. They estimate that they can sell at least 200 cans at each game.
(a) To break even, what is the most that they can pay in fixed costs?
(b) If they sell 300 cans during a game, how much can they pay in fixed cost?