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5. Karen initially charged S80 for an hour-long massage and averaged 20 clients per week. When she raised her price to S100, the number of

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5. Karen initially charged S80 for an hour-long massage and averaged 20 clients per week. When she raised her price to S100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service? 6. A company has fixed costs of $20,000 in order to sell a product that costs them $50 per unit. If a company sells the product for $120 per unit, a. Determine the break-even units b. Determine the units required to produce S100,000 in profit 7. Use the table below for the following questions Selling price per unit s 17 Fixed expenses Selling & administrative Interest expense $ 130,000 $10,000 Variable expenses Cost of goods sold Selling & administrative $ 3 a) What is the break-even point in units? b) If the company wants to earn a profit of $42,000 instead of breaking even, what is the number of units the company must sell

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