1. [32 marks ] Caf Quatre Origines is considering launching a new line of Tartes Tatin. The estimated start-up costs are $300,000. The tartes sell to retailers for $2.80 per unit. The variable costs for materials and labour are estimated to be $1.90 per tarte.
   1. [2] The demand is expected to be 20,000 Tartes per month. How long will it take Quatre Origines to breakeven?

1. 2. [3] Quatre Origines has decided that they will consider investments that will return a profit of 30% of start-up costs. How many units must they sell?

1. 3. [3] Suppose that they require a profit of 6% of revenue. How many tartes must they sell?

1. 4. [3] The caf is uncertain about its variable costs due to damaged crops and negotiations with its workers. How high can variable costs rise and still permit the caf to breakeven within 2 years?