1- Total fixed cost of a carpet manufacturing company is $280000. Variable cost per carpet is $80, and unit selling price of the carpet is $150.

a- How many carpets must the business sell to be at the breakeven point?

b- What is the company's sales revenue at breakeven point?

c- If management wants to earn a profit of $350000, how many carpets must the company sell?

d- Suppose that

total fixed cost of the company increase by $40000

variable cost per carpet doesnt change

selling price per carpet doesnt change

Company sold 600 carpets in both cases

Compare the contribution margin of two cases? (does it increase or decrease?)

e- Suppose that

variable cost per carpet increase by $10

total fixed cost of the company increase by $20000

selling price per carpet doesnt change

Company sold 700 carpets How much would the companys sales profit be in new case?

f- Suppose that

total fixed cost increase by 50%.

variable cost per carpet increase by 50%

selling price per carpet increase by 50%

Company sold 2000 carpets in both cases Compare the contribution margin of two cases

g- Suppose that

total fixed cost increase by 25%.

variable cost per carpet doesnt change

selling price per carpet decrese by 30% Compare the sales volumes at the breakeven point of two cases

2- Explain what shutdown point and its importance for a company.

Note: Show all the mathematical operations you have done and upload homework to the system in Word format