1. Village Industries Ltd makes baskets. The fixed cost of operating the workshop for a month totals $500. Each basket requires materials that cost $2, and each takes one hour to make. The business pays the basket makers $10 an hour. The basket makers are all on contracts such that if they do not work for any reason, they are not paid. The baskets are sold to a wholesaler for $14 each. What is the BEP for basket (in number of baskets/month) making for the business? 2. Village Industries Ltd expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed cost of operating the workshop for a month to $3,000. Using the machine would reduce the labor time to half an hour per basket. The basket makers would still be paid $10 an hour. (a) How much profit would the business make each month from selling baskets 1. assuming that the basket-making machine is not rented; and 2. assuming that it is rented? (b) What is the BEP if the machine is rented