1) A small company makes and sells a unique type of chair to local furniture stores for $55 (Price or P). The fixed cost (FC) is $8,000 and the variable cost (VC) is $15 per unit. Using breakeven analysis, determine how many chairs need to be sold before the company starts making a profit?

2) A small business owner is doing some calculations for a new line of souvenir tee-shirts. The selling price (P) will be $48 per shirt. The fixed cost (FC) is $90,000 and the variable cost (VC) is $12 per unit. The company will need to sell __________ worth of tee-shirts to breakeven.

3) A small business owner is doing some calculations for a new line of souvenir tee-shirts. The total variable cost (VC) will be $24 per shirt. The overall fixed cost (FC) of operating the company is estimated to be $120,000 annually. Marketing research predicts at least 10,000 tee-shirts can be us sold. The company should consider setting the price of each tee-shirt at __________ to make sure the company will breakeven.