1-You and your friend have decided to go into business together manufacturing handbags. You know fixed costs will be $11,000 a year, and you expect variable costs to be $28 per bag. If you plan to sell the bags to retail stores for $35, how many must you sell to breakeven?

2- You have found a location that would reduce your fixed costs to $9,500 but your variable costs are increasing due to the economy to $30, because of these changes you have decided to sell the handbags to retail stores for $41 each. How many would you have to sell to break even?

3-Katherine D'Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $270 for printing these programs, and the variable cost is $3. There is also a $850 fee that is paid to the university for the right to sell these programs.

a) If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?