8. Novelties Ltd. produces miniature Canadian flag decals. The fixed costs for their latest project are

$5000. The variable costs are $0. 70/flag, and the company should be able to sell them for $2 apiece.

How many flags must Novelties Ud. sell to break even? How many flags must the company sell to make a profit of $2000? If the maximum number of flags the company can sell is 5000, should it get involved in this project?