1-1. XYZ, Inc., is considering the addition of another tower in one of the fast growing cities to improve mobile service and meet the growing demand. The primary location being considered will have a fixed cost of $10,000 per month and variable cost of $25 per customer served. Each customer is charged $50 on average in the area.

(a).What volume is needed to provide a monthly revenue of $120,000

(b) What should the price be if XYZ wants to make a monthly profit of $10,000 and they have 1,000 customers? Note: Profit = Q * (R-v) - FC. Plot the total cost and total revenue lines to graphically show the break-even point .