An entrepreneur is considering starting a new business. Fixed monthly costs are estimated to be $8500. The entrepreneur believes that monthly sales volume will be 5,000 units at $40 per unit. Variable cost per unit is $15.

a. Given the entrepreneurs other assumptions, what level of monthly sales volume will enable him to break even?

b. Given the entrepreneurs other assumptions, how does a change in monthly sales volume affect monthly profit? (For monthly sales volume, check the range between 4000 and 12,000 units in increments of 1,000)

c. Given the entrepreneurs other assumptions, how does a joint change in monthly sales volume and variable cost affect monthly profit? (For monthly sales volume, check the range between 4000 and 12,000 units in increments of 1,000 and for variable unit cost check the range between $10 and $40 in increments of $10)

USE EXCEL AND SHOW CALCULATION/FORMULA