1. BBB Inc. produces and sells sunglasses. The cost to produce each pair of sunglasses is $140 per unit. To market the product, the business has to spend $28,000 on advertising each month. Answer the following questions, and choose the closest answer from the possible choices following each question:

If BBB Inc.'s profit goal is $80,000, how many pairs of sunglasses would the firm need to sell to reach this goal?
If the advertising costs increases to $75,000, and BBB Inc. estimates that he can sell 800 units to break even, what will be the lowest price he could charge and still break even with selling 800 units?

2. AZA Company sells chairs for $70 eachafter purchasing the chairs from a manufacturer. The store's overhead expenses are 45% of regular selling price, and the owners require a profit of 25% of regular selling price. Answer the following questions, and choose the closest answer from the possible choices following each question:

a. For how much does AZA Companypayfor each chair that it purchased from the manufacturer? b. What is the dollar amount of markup (M) for selling a chair at $70?

b. What is the sale price (reduced price) if the chair is marked down 18%?