Clone Computers assembles and packages personal computer systems from brandname

components. Its Home Office PC System is assembled from components costing

$1400 per system and sells for $2000. Labour costs for assembly are $100 per system.

This product lines share of overhead costs is $10,000 per month.

a. How many Home Office Systems must be sold each month to break even on this

product line?

b. What will be the profit or loss for a month in which 15 Home Office Systems are sold?