Anki is a Finnish manufacturer of rugs. Last year, it sold rugs for €350, with a variable operating cost of €200 per rug and a fixed operating expense of €1,050,000.

a. How many rugs must Anki sell this year to achieve the breakeven point for the stated operating costs if all figures remain the same as for last year?

b. How many rugs must Anki sell this year to achieve the breakeven point for the stated operating costs if fixed operating costs increase to €1,300,000 and all other figures remain the same?

c. How many rugs must Anki sell this year to achieve the breakeven point for the stated operating costs if the selling price decreases to €320, and all other costs don’t change?

d. How many rugs must Anki sell this year to achieve the breakeven point for the stated operating costs if the variable operating cost per rug increases to €220 and all other figures remain the same?

e. What conclusions about the operating breakeven point can be drawn for your answers?