Q24 Q27 are based on the problem below.

Redbox is a video kiosk rental company that is a direct competitor of streaming company Netflix. In recent years, Redbox has gradually gained market share especially in locations with sufficient population density. Based on a market research, Redbox is considering placing kiosks in downtown Mountain View. The table below shows the fixed costs and range of output (i.e., the number of DVD Rentals). The revenue is estimated to be $6 per rental and the variable cost (e.g., handling, shipping, and fee paid to studios) is estimated to be $1 per rental.

Number of Kiosks	Total Annual Fixed Costs	Corresponding Range of Annual Output (Number of DVD Rentals)
1	$35,000	0-6,500
2	$62,000	6,501-13,000
3	$90,000	13,001-19,500

Q24. What is the break-even point if placing 1 kiosk?

Q25. What is the break-even point if placing 3 kiosks?

Q26. If the projected annual demand is between 12,500 and 12,800, how many kiosks should Redbox place in downtown Mountain View?

Q27. If the projected annual demand is further narrowed down to 12,600 based on an advanced forecasting method, what is the maximum annual profit Redbox can achieve by placing the optimal number of kiosks in downtown Mountain View?