Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $65. Footwear Inc. incurs fixed costs of $200,000 per year.

a.What is the break-even point in pairs of shoes for the company?

b.What is the dollar sales volume the firm must achieve to reach the break-even point?

c.What would be the firm's profit or loss at the following units of production sold: 4,000 pairs of shoes? 12,000 pairs of shoes? 18,000 pairs of shoes?