TLC Company sells a single product, a food basket (containing fruit, cheese, nuts, and other items) that friends and family can purchase for college students who need a little extra TLC. This product, called the Exam-O-Rama, sells for $10 per basket. The variable cost is $7 per basket, and the total fixed cost is $24,000 per year.

Required: (1) Draw one graph showing TLC’s

(a) total revenues and

(b) total costs as volume varies. Locate the break-even point on the graph.

(2) What is TLC’s profit equation in terms of units sold?

(3) What is TLC’s break-even point in units?