2. A local baker is contemplating opening a specialty premium muffin store on campus. The campus will charge $2500.00 in rent (utilities included) per month which will create a situation of 25 business days per month. The ingredients for a muffin cost $1.37 each and an hours baking labour ($20.00 per hour) produces 200 muffins. The store will operate 10 hours per day with an hourly labour cost of $30.00 (this is two staff on at all times). (a) Determine the fixed costs for this situation (b) Determine the variable costs for this situation (c) Determine the linear monthly cost equation for this situation (d) Assuming we will sell premium muffin for $4.00 each determine the linear monthly revenue equation (e) Determine the break even quantity of muffin sales dictated by this situation. justify in writing any necessary rounding for answer. How muffins is this per day? per hour? Are the cost and revenue values for this months sales quantity. (f) What impact on the above information would charging $5.00 a premium muffin have? 3. (Application) A local contractor decided to buy a new logo-ed truck to promote zeir business while doing jobs. The truck can be purchased for exactly $685,000.00 today (all in). Ze anticipates that in 7 years they will retire the truck and sell it for a predicted value of $117,750.00. Assuming a linear annual depreciation what is the average depreciation per year? What is the linear equation that will show the value of the truck (y) based on years of age (x)