Home Insert Page Layout Formulas Data Review View * Cut Calibri (Body) 11 A- A- ab Wrap Text Copy Paste B I U A Merge & Center Format D21 fx A B D E F G H 1 J K L M Grading 15 pts 1 A product at a manufacturing company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. 2 Last year, 17,500 units were produced and sold. The selling price is $22 per unit, the variable cost is $18 per unit, and the fixed 3 cost is $80,000. 4 5 a. What is the break-even quantity for this product? 6 b. If sales were not expected to increase, by how much would the company have to reduce their variable cost to break even? 7. (Hint:To calculate the new unit variable cost required to breakeven, use the breakeven equation from part a, but solve for unit 8 variable cost.) 9 c. the sales manager believes that $1 reduction in price will increase sales 50%. Is this enough for the company to break even? If 10 not, by how much would sales have to increase? 11 12 20pts 25pts 13