This year Babco's fixed costs total \(\$ 110000\). The business sells recyclable 1 -litre thermos drink containers for \(\$ 13\) each. The variable cost per container is \(\$ 8\).

Required:

a Compute the break-even point in number of containers.

b Compute the number of containers that Babco must sell to earn a profit of \(\$ 70000\).

c If the total fixed cost increases to \(\$ 150000\) next year:

i what will be Babco's break-even point in containers?

ii what profit (or loss) will Babco have if it sells 28000 containers?

iii how many containers will Babco have to sell to earn a profit of \(\$ 70000\) ?