A project faces fixed costs of $1,000, variable costs equal to 60% of cash sales volume, and a unit price of $0.5.

Answer the following questions:

1. How much are sales at breakeven?

2. What is the equilibrium quantity?

3. Assuming the cost structure and selling price above, what level of sales must the company achieve to make a profit of $200?

4. How many units must the project sell to earn the $200 profit?

5. For the previous assumption, how much are the variable costs?

6. What sales volume (measured in pesos) must the company reach to cover an increase of $50 in fixed costs and continue to obtain a profit of $200, without changing the sale price? What is the physical volume?

7. With the above data, determine the physical volume and the amount of sales from which benefits are obtained