3. The R&D Department of your company has provided you with the following cost estimates for the launch of your new product - a snazzy, limited edition torque wrench. Fixed cost equals $1,000,000 and variable cost equal $250 per unit. You are very competent marketing research Department estimates that, at a selling price of $500.00 each, you might be able to capture 15% of the market for upscale torque wrenches, which translates into a market potential the 5000 units.

A) Do a breakeven analysis and calculate the breakeven quantity.

B) Based on this calculation, should the project be undertaken?

C) What would be your profit (or loss) at the 5000-unit level of production be?