Answer the following questions about the break-even analysis.
1. New City Day-care Center (NCDC) operates from Monday to Friday. It has fixed expenses of $5,000 per week and charges each child who attends the program $15 per day. It costs NCDC $5 per day for supplies and snacks for each child. How many children must come to NCDC each day for it to break even?
2. If NCDC gets a contribution of $1,000 per week, its break-even point (choose the correct answer)
a. Increases.
b. Decreases.
c. Stays the same.