1.Pet Energy Therapy Association (PETA) treats peoples' pets, and has the following cost structure:

Charge per therapy session$ 95

Variable cost per therapy session$ 45

Fixed costs $75,000

They expect to perform 2,000 two hour session each year (Two people, 8hrs/day, 5 days/week, 50 weeks/year).

A.Construct PETA's profit and loss statement.

B.How many sessions must PETA's perform to breakeven? Sessions.

C.To earn double the profit in Part A, how many sessions must they provide this year?

Sessions.

D.If only one employee worked, booked fulltime, thus they only perform 1,000 sessions per year, what would be the profit/loss (fixed costs remain the same)?