Assume Derincos (a start-up company that designs and manufactures leather bags) average monthly sales and costs are as follows:

Sales: 1000 units

Price per unit: 50 TL

Variable cost: 15 TL

Fixed Costs: 20000 TL

A) What is the breakeven volume? Briefly comment on the companys current financial situation (i.e. profit or loss).

B) Management is considering a 10% price increase. Please determine how much decrease in sales could be tolerated for the price increase to be beneficial.

C) Now, evaluate another scenario where management is considering spending 10000 TL on banner ads. Should they do it?

Please explain your work and use the key concepts (fixed costs, variable costs, contribution, etc.) while you are doing your calculations.