Question: 1. The owner Berry Pies, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000.

1. The owner Berry Pies, is contemplating adding a new line of pies, which will require

leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per

pie, and pies would retail for $7 each.

a. How many pies must be sold in order to break even?

b. What would the profit (loss) be if 1,000 pies are made and sold in a month?

c. How many pies must be sold to realize a profit of $4,000?

d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged

per pie?

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