QUESTION 15 20 points Saved Break-Even Analysis Intro: Break-even analysis helps determine when the business revenues equal its costs. There are several types of costs to consider when conducting a break-even analysis, such as fixed costs, which are constant regardless of the number of units sold, and variable costs which are recurring costs absorbed with each unit sold (e.g., labor, materials, etc.). To find a breakeven point, the following formula can be used: Breakeven Point = Fixed Costs/Profit = Fixed Costs/(Unit Selling Price - Variable Costs) Austin Davis recently acquired a chain of dry cleaning outlet in Windsor. The business is making a modest profit, but the new owner suspects that investing in a new press will substantially increase profits. The new press costs $15,400 to purchase and install and can press 40 shirts an hour (or 320 daily). Austin estimates that with new press, it will cost $0.25 to launder and press each shirt. Customers are charged $1.10 per shirt. Part A: How many shirts will have to be pressed to break even? Part B: So far, the workload has varied from 50 to 200 shirts a day. How long would it take to break even on the new press at the low demand estimate? At the high-demand estimate? Part C: If the price is cut down to $0.99 per shirt, the owner expect to stabilize his customer base at 250 shirts per day. How long would it take to break even at the reduced price of $0.99? Should the new owner cut his price and buy the new press