Assume a fixed cost of $1,200, a variable cost of $7.25, and a selling price of 12.25.
a. What is the break-even point in units?
b. How many units must be sold to make a profit of $500,000?
c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit? And $1.50 per unit?