Bathtub Rings Company sells shower-curtain rings for $1.60 per box. The variable cost is

$1.20 per box, and the fixed cost totals $30,000 per year.

Required: (1) What is Bathtub Rings’ profit equation in terms of boxes of shower-curtain rings sold?

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

(3) What is Bathtub Rings’ break-even point in units?

(4) What would total profits be if Bathtub Rings sold 500,000 boxes of showercurtain rings?

(5) How many boxes of shower-curtain rings would Bathtub Rings have to sell to earn $50,000 of profit?