A technology company called Luxe allows customers through its app to have valets who will meet the customer, take their car, and park it. Curtis Lee, the founder, was quoted as saying about a leased parking space, If we turn it over X amount of times per-unit, it becomes cheaper. What does he mean when he says it becomes cheaper? Does the price of Luxe go down the more it is used?

New Horizons, Inc. reported the following information: Unit sales price is $10; variable cost per unit is $6; total fixed costs are $40,000. 1. What is the companys breakeven point? 2. New Horizons, Inc. is looking to achieve a net income of 15 percent of sales. What is the level of sales in units required to achieve a net income of 15 percent of sales? 3. New Horizons, Inc. decided to increase the unit sales price by 10%. How would it change the break-even point?