Given the assumptions below about the manufacture of Barbie dolls, answer the following two questions:

How many Barbie dolls does Mattel need to sell to breakeven?

If Mattel sells 725,000 Barbie dolls how much of a profit or loss will the company generate?

Fixed costs attributable to Barbie are $1,500,000

The variable cost of producing each doll is $1.25.

Average wholesale selling price of a Barbie doll is $3.75.