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346 Managerial Economics Problem', with one or two little twists. Part (a) is answered by using the formula: Fixed costs Breakeven = Price - Marginal cost To answer part (b), find the opportunity loss corresponding to each combination of act and event (production or demand equal to 1000, 1200, etc.). Then convert the frequency to a probability distribution, and find the action to minimise opportunity loss. The answer to part (c) requires the use of the failure rate probability distribution so that the expected number of saleable loaves is 1200. The expected failure rate is 0.095, so 1326 must be produced to give an expected 1200 saleable loaves (1326 x 0.905 = 1200). Then the expected cost of producing 1300 (saleable) loaves must be calculated with or without the overhaul, to see if the expected savings from overhaul exceed the 11 per day the engineer would cost. Finally, marks would be wasted by omitting part (d)