E22-7 William Calhoun is considering starting a Web-based educational business, e-Prep MBA. He plans to offer a short-course review of mathematics for students entering MBA pro- grams. The materials would be available on a password-protected Web site and students would complete the course through self-study. Calhoun would have to grade the course assignments, but most of the work is in developing the course materials, setting up the site. and marketing. Unfortunately. Calhoun's hard drive crashed before he finished his financial analysis. However, he did recover the following partial CVP chart: 70.000 60.000 50,000- 40,000 30,000 20.000 10.000- # 100 200 300 400 500 600 Required 1. Label each axis, sales revenue. total expenses, fixed expenses, operating income, and operating loss. 2. If Calhoun is certain he can attract 340 students to take the course, will the venture be profitable? 3. What are the breakeven sales in students and dollars?