Kawai purchased a new printing machine and started a small printing shop. As per his calculations, to earn a revenue of $5000 per month, he needs to sell printouts of 25,000 pages per month. If the printing machine has a capacity of printing 40,000 sheets per month, the variable costs are $0.02 per sheet, and the fixed costs are $1800 per month, calculate:

a. The selling price of each printout.

b. C. The new break-even point per month if the fixed costs decrease by $360 per month. The new break-even point as a percent of the capacity.

AppendixLO1