I am responsible for the product line assigned by your Division Manager recently.Your Cost model for this product line isC= 675(x) + 60,000, where "x" represents units produced during a particular sales period and "C" represents total Costs.Upon assuming product line responsibility, you note that the price "p" of $400per unit set by your predecessor for the past few sales periods resulted in a Revenue model ofR= (p)(x) =400(x).

(a) Why my predecessor is not managing my product line?

(b) If your market research department reports no limiting production or market constraints on "x", what is thesmallestpossible price "p" you would need to set in order to not only "break even" but to generate a positive Profit?

Units [x] Cost [C] Rev [R] Profit [P]

10 66750 4000 -62750

20 73500 8000 -65500

50 93750 20000 -73750

80 114000 32000 -82000

100 127500 40000 -87500

120 141000 48000 -93000

130 147750 52000 -95750