1. NationalTires is considering producing and selling a new product for tire repair. The fixed cost for setting up the production floor is estimated to be $275,000. Variable production and material cost are estimated to be $15 per unit of the product. NationalTire estimates the total demand for the products to be 10000 units. NationalTire plans to sell the product to consumers for $45 per unit.

a) What is the breakeven point?

b) What profit or loss can be anticipated with a demand of 10000 units?

c) With a revised demand of 8000 units, what is the minimum price per unit that NationalTire must charge to break even?

d) If NationalTire believes that the price per unit could be increased to $55 and not affect the anticipated demand of 8000 units, what profit or loss can be anticipated?