$6\mathrm{.}3.$ T$.$ W$.$ Smitty, an emerging rapper, has reserved a recording studio for $$5,000$ to cut his first album, called "Smart Rap." The cost of recording the album is $$5,000$ and copies are $$5$ apiece. If the vinyl albums are priced at $$15$ each, how many must be sold to break even? What is the breakeven point in dollars?

$-$Answer

$500$;$$7,500$

$6\mathrm{.}4.$ T$.$ W$.$ Smitty is confident that demand for his Smart Rap album will substantially exceed the breakeven point computed in Problem $6\mathrm{.}3,$ so T$.$ W$.$ is contemplating having his album cut at a classier $($and pricier$)$ studio. The recording costs would rise to $$9,000.$ However, since this new studio works with very high volume, production costs would fall to $$2$ per vinyl album.

a$.$ What is the breakeven point for this new process?

b$.$ Compare this process to the process proposed in the previous problem. For what volume of demand should T$.$ W$.$ choose the classier studio?