Let's break this down step by step using basic business math and algebra. Here's what we know: - Original selling price per unit: P8,500 - Recommended price reduction: 10% New price = P8,500 (1 - 0.10) = P7,650 - Fixed cost: P4,000 - Variable cost per unit: P500 Let x be the number of units sold. --- 1. ? Total Revenue (TR), Total Cost (TC), and Profit Functions - Total Revenue (TR) = Selling price Quantity TR(x) = 7,650x - Total Cost (TC) = Fixed cost (Variable cost Quantity) TC(x) = 4,000 500x - Profit Function (P) = TR - TC P(x) = 7,650x - (4,000 500x) P(x) = 7,150x - 4,000 --- 2. Break-even Quantity Break-even occurs when Profit = 0, i.e., TR = TC: \[ 7,650x = 4,000 500x \] Subtract 500x from both sides: \[ 7,150x = 4,000 \] Solve for x: \[ x = \frac{4,000}{7,150} 0.56 \] ? Break-even quantity 1 unit (since you can't sell a fraction of a unit, you'd need to sell at least 1 unit to break even) --- 3. ? Profit at Sale of 1,000 Units Use the profit function