Hi

I am working on this exercise but am blocked on question b) Is there any potential tip or advice please? thank you in advance

1. (12) Read the following article on Breakeven Quantity from Harvard Business Review: https://bit.ly/3eXmq2J then use it answer the following questions.

a.(6) Suppose an automobile manufacturer has fixed costs equal to $300 million, variable costs per unit (aka marginal costs) equal to $45,000 per vehicle. Calculate the breakeven quantity at a price of$65,000/vehicle and at a price $50,000/vehicle.

For $65,000/vehicle:

BEQ = Fixed costs / (price per unit - variable cost per unit)

BEQ = 300,000,000 / (65,000 - 45,000)

BEQ = 15,000 units

For $50,000/vehicle:

BEQ = 300,000,000 / (50,000 - 45,000)

BEQ = 300,000,000 / 5,000

BEQ = 60,000 units

b.) (6)Suppose the company is considering investing $20 million in a new marketing campaign. They estimate they would sell an additional 2,000 vehicles if the price is $65,000/vehicle, or sell an additional 3,000 vehicles if the price is $50,000/vehicle. Calculate the company's profits under both scenarios. Should they invest the $20 million in the marketing campaign? If so, what price should they charge?