Case: Majestic Pool Builders promises more than the customer has ever imagined for their backyard resort. It designs and constructs custom swimming pools & spas with superb beauty and value. Jessica Sumners, the operations manager, is convinced that the company offers a premium service and that the current price does not capture the value that it should. After numerous meetings with the owners, Majestic Pool Builders want to analyze the effects of a price change. While different pools are priced differently, the company performs its break-even analysis using the "typical" pool that currently sells for $35,000 for design and construction. The variable costs for a Majestic's swimming pool include excavation, landscaping, pool equipment, labor, building permits, and various add-ons. In total, these construction components amount to $14,000 in variable costs. The company has annual fixed costs of $325,000 to cover labor, rent, insurance, advertising, utilities, and other expenses. In the average year, Majestic Pool Builders designs and constructs around 45 pools. 1. What is the contribution per unit (pool) for Majestic Pool Builders? (Click to select) 2. What is the break-even point in number of pools for Majestic Pool Builders? (Click to select) 3. What are the expected monthly profits for Majestic Pool Builders? (Click to select) 4. What will the profits be if Majestic Pool Builders sells 54 units (pools)? (Click to select) 5. If a close competitor sets their price to $21,000 per pool, should Majestic Pool Builders match the price? (Click to select) 6. What is the approximate break-even point in pools for Majestic Pool Builders if its fixed costs rise to $487,500? (Click to select)