Bathtub Rings is a business that sells shower-curtain rings for \(\$ 1.60\) per box. The variable cost is \(\$ 1.20\) per box, and the fixed cost totals \(\$ 20000\) per year.

Required:

a What is Bathtub Rings' profit equation in terms of boxes of shower-curtain rings sold?

b Draw a graph of Bathtub Rings' total contribution margin and total fixed cost as volume varies. Locate the break-even point on this graph.

c What is Bathtub Rings' break-even point in units?

d What would total profits be if Bathtub Rings sold 500000 boxes of shower-curtain rings?

e How many boxes of shower-curtain rings would Bathtub Rings have to sell to earn \(\$ 50000\) of profit?