furniture firm produces $500$ chairs per month and shows a profit of $$1500.$ The firm stimates their fixed costs to be $$12000$ and sells the chairs to the retailer for $$60$ each.

Calculate the variable costs per unit.

Calculate the break even point and sketch the graph.

The firm is considering a drop in the selling price to $$55$ per chair in the hope of raising the volume of sales to $600$ per month. Would this be advisable?