See-Clear Optics is considering producing a new line of eyewear. After considering the costs of raw materials and the cost of some new equipment, the company estimates fixed costs to be $38,000 with a variable cost of $52 per unit produced.

a) If the selling price of each new product is set at $90, how many units need to be produced and sold to break even? Use both the graphical and algebraic approaches.

b) If the selling price of the product is set at $85 per unit, See-Clear expects to sell 1800 units. What would be the total contribution to profit from this product at this price?

c) See-Clear estimates that if it offers the product at the original target price of $90 per unit, the company will sell about 1600 units. Will the pricing strategy of $90 per unit or $85 per unit yield a higher contribution to profit?