1. Balance point problem: 6 points

Given a fixed cost of $400,000, a price of $14.00, and a variable cost of $4.

1. Find the break-even point in units.

1. find the breakeven point in dollars.

1. Find the profit or loss if 30,000 units of output are produced. Discuss if there is profit or loss.

Proposed method.

Increase of a 50% increase in fixed cost, a 25% decrease in variable cost, and a 20% increase in production units

1. Find the break-even point in units.

1. find the breakeven point in dollars.

1. Find the profit or loss under this proposed method.

Discuss which method is the best.