Two college students have come up with the same idea at the same time, and because they are unable to decide who should be CEO, they go into head-to- head competition. They do, however, build their business models quite differently. Elsa decides to hire assembly workers on payroll; Anna decides to outsource her assembly to a contract manufacturer which charges a fixed amount per piece manufactured. Here are the characteristics of each business: Elsa's cost structure Material costs $5/unit Salaries $13,000 per month Rent $36,000 per year Advertising $3,000 per month Admin Expenses $1,000 per month Anna's cost structure Material costs $5/unit Contract Manufacturer $10/unit Here are the characteristics of each business: Elsa's cost structure Material costs $5/unit Salaries $13,000 per month Rent $36,000 per year Advertising $3,000 per month Admin Expenses $1,000 per month Anna's cost structure Material costs $5/unit Contract Manufacturer $10/unit Costs Salaries $24,000 per year Rent $1,000 per month Advertising $3,000 per month Admin Expenses $1,000 per month 2 1 point What is the breakeven number of units sold for Elsa? Type your answer... 3 1 point What is the breakeven number of units for Anna's business? Type your answer... 4 1 point Assume that each company sells 1,000 units in the first month. What is the operating profit for Elsa's company that month (before taxes, etc.)