prof posted incorrect solutions. Please help

3. FlyCar is planning to produce a car that costs $4,000 to produce. They also plan to pay their salespeople $1000 commission for each unit sold. The price of the car will be $7,000. Their fixed costs are about $100,000 per year. Their marketing team is estimating that they will be able to sell about 1,000 car per year. Should FlyCar continue with this venture? Answer: The question is asking us to understand whether FlyCar will ever be able to recuperate their fixed costs. To answer this question, let's begin by finding out the CM per unit. VC=$4,000+$1,000=$5,000CM=PriceVC=$7,000$5,000=$2,000TotalCM=$2,0001,000=$200,000 Question is: is Total CM > Fixed Cost? Answer: Total CM=$200,000> Fixed Cost =$100,000 So, FlyCar should continue with this venture, as they will end up breaking even, and making profits. 4. While planning to produce their car, FlyCar (from question 3) learned that one of the employees responsible from gathering their cost structure information made a couple mistakes. In fact, their cost to produce the car was 20% more than the original number of $4,000. Furthermore, the estimated fixed costs were 25% higher than the original number. Based on this new information, should FlyCar still continue with this venture? Answer: Original Cost of Production =$4,000; Percentage Change =20% New Cost of Production =$4,0001.2=$4,800 New Variable Costs =$4,800+$1,000=$5,800 New CM =$7,000$5,800=$1,200 Total CM =1000$1,200=$120,000 Original Fixed Costs =$100,000; Percentage Change =25% New Fixed Costs =$100,0001,25=$125,000 Question is: is Total CM > Fixed Costs? Answer: Total CM =$120,000 Fixed Cost? Answer: Total CM=$200,000> Fixed Cost =$100,000 So, FlyCar should continue with this venture, as they will end up breaking even, and making profits. 4. While planning to produce their car, FlyCar (from question 3) learned that one of the employees responsible from gathering their cost structure information made a couple mistakes. In fact, their cost to produce the car was 20% more than the original number of $4,000. Furthermore, the estimated fixed costs were 25% higher than the original number. Based on this new information, should FlyCar still continue with this venture? Answer: Original Cost of Production =$4,000; Percentage Change =20% New Cost of Production =$4,0001.2=$4,800 New Variable Costs =$4,800+$1,000=$5,800 New CM =$7,000$5,800=$1,200 Total CM =1000$1,200=$120,000 Original Fixed Costs =$100,000; Percentage Change =25% New Fixed Costs =$100,0001,25=$125,000 Question is: is Total CM > Fixed Costs? Answer: Total CM =$120,000