The owner of a company is contemplating adding new line of pies. Which will require leasing new equipment for a monthly payment of $6,000, variable cost would be $2 per pie, and pies would retail for $7each.
a. How many pies must be sold in order to break even?
b. What would the profit(loss) be if 1,000 pies are made and sold in a month?
c. How many pies must be sold to realize a profit of $4,000?
d. If 2,000 can be sold and a profit target is $ 5,000, what price should be charged per pie?