EpoxyShields is considering producing and selling a new product for asphalt repair. The fixed cost for setting up the production floor is estimated to be $120,000. Variable production and material cost are estimated to be $7 per 10 Litre unit of the product. Epoxyshield estimates the total demand for the products to be 5000 units. Epoxysheid plans to sell the product to hardware stores for $25 per unit.

a) What is the breakeven point?

b) What profit or loss can be anticipated with a demand of 5000 units?

c) With the demand of 5000 units, what is the minimum price per unit that EpoxyShield must charge to break even?

d) If EpoxyShield believes that the price per unit could be increased to $30 and not affect the anticipated demand of 5000 units, what profit or loss can be anticipated?