Bill Jeffers is considering selling baseball cards at a collectors convention. Bill can purchase the cards from a wholesaler for $55 a bundle. By attending the convention Bill is required to rent a booth for $6,500. There are no other costs to attend. Bill believes the cards can be sold for $75/bundle, and there is an unlimited linear relationship in terms of units sold.

a)Calculate the unit breakeven point?

b)Assume that the contribution margin for the above scenario is $10 per unit, if Bill wants to make $3,600, how many units does he have to sell? (Assume the fixed costs to rent the booth are still $6,500)

c)Through market research Bill believes he can sell 500 baseball card packs at the convention. Bill is offered the opportunity to rent a booth close to the main entrance, the cost to rent a booth closer to front is an additional $1,000 for the entire convention (plus the $6,500 initial rental fee) Assume the contribution margin is $22/unit. How many additional bundles does Bill need to sell in order to justify the additional fee (that is what is needed to sell to recover the additional rental fee)?