Problem:
Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500.
Question 1.) Compute the break-even point in units.
Question 2.) Compute the total sales at the break-even quantity.
Question 3.) What are the total variable costs at the break-even quantity?
Please provide step by step solution for each question.