Simmons Kitchens sells small electric knives for \(\$ 4\) each. Variable costs are \(\$ 2.40\) per unit, and fixed costs total \(\$ 60000\) per year.

Required:
a Write out Simmons' profit equation in terms of knives sold.
b Draw a graph of Simmons' total contribution margin and total fixed cost as volume varies. Locate the break-even point on this graph.
c Calculate Simmons' break-even point in units.
d What total profit would Simmons expect if it sold 500000 knives?
e How many knives would Simmons have to sell to earn \(\$ 80000\) profit?