Enoshima Company's leisure surfboat division manufactures surfboat fins and sells to group of suffers. Kenji Tanaka, the manager of the division has the following projections for the year 2016:

Sales (1,000 surfboat fins) $18,000

Operating expanses:

Variable expenses $10,500

Fixed expenses 4,500

Total expenses (15,000)

Net Income $3,000

1. What is breakeven point of quantity sale?

2. If sales decrease 30%, what is loss or profit for a company?

3. Show the above relationship in graph. Cleary indicate the breakeven point and the situation described in question #2.