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4. Walter wants to start his new laboratory, the White Lab, to produce chemical fertilizer. He rents a warehouse for a monthly rate of $2,300.

image text in transcribed 4. Walter wants to start his new laboratory, the White Lab, to produce chemical fertilizer. He rents a warehouse for a monthly rate of $2,300. He also needs to buy some equipment for $1,700. He has calculated that he needs $1 of soil, 20 Cents of water, and $2.6 of chemicals for each kg of his product. His distributor has informed him that they can sell the fertilizer for $4.2 per kg. (6 Marks) a. Define and calculate the Break-Even point for Mr.White's business. b. Define and calculate the total contribution margin for this business. c. Graph the Break-Even chart. d. Explain in what situation Walter's business can not be profitable (the Break-Even point does not exist)

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