Assume the average unit sales price is $2.00 and the average unit cost is $1.10 for beverages.

Fixed costs for the business are $90,000 per year.

1. What is the breakeven point in unit sales?
2. What is the breakeven point in total sales dollars?
3. How much profit would they make if the sales price increased by 8% per unit, but all variable & fixed costs remained the same?
4. How much profit would they make if they increased sales volume by 10% and fixed costs remained the same?
5. How much profit would they make if they increased sales volume by 10%, increased sales price 8% per unit, and fixed costs where lowered by 5%?
6. What is the effect of selling merchandise along with beverages on breakeven?