1. A fast food restaurant sells meals for $6 each. The variable costs of preparing and serving each meal are $3. The monthly fixed costs amount to $4000. The restaurant produces a maximum outpout of 2000 meals per month

a) How many meals must be sold each month for the restaurant to break-even?

b) If the restaurant sold 2000 meals in one month, what was the profit made in that month?

c) If the cost of the food ingredients rose by $2 per meal, What would be the new break-even level of production? Explain two possible outcomes

Thank you!