A shop owner is thinking about raising the price of an item she sells. Currently, she is selling 80 units each week at a price of $30.00 each, with variable expenses of $13.50 per unit. Price elasticity of demand for this product is estimated to be -1.8, meaning that customers will respond negatively to any price increases they see. Price elasticity is defined as the ratio of the percentage increase in a price to the percentage increase in the consumer's willingness to pay. Based on the data, it seems that barely half of the target audience for this merchant knows the current asking price for this item. Fifty percent of the population is only aware that the price ranges from $22 to $38.

a. What is the breakeven sales level for a $5 price increase for this product?

b. Determine whether this price increase of $5 would result in a profit for the merchant using the price change response data provided in the issue.