1. AT manufactures a variety of communication and location devices for marine industries. They are considering making an emergency locator beacon for small vessels, such as fishing boats and pleasure craft. They estimate that start up costs will be $140,000. The beacons will cost $28 each to manufacture and have a unit price of $56.

[4 pts] Construct revenue, cost, and profit functions in terms of the number of beacons made.

[2 pts] How many beacons must be made and sold to breakeven? What is total sales at this point?

[3 pts] AT is concerned about cost increases for some components. If they believe that the market for the beacons is 7500 units, how high can their variable cost per unit be and they still breakeven?

[6 pts] Construct a graph of the revenue, cost and profit functions from part a). Label all functions and the axes, as well as the breakeven point.