It is estimated that a worker takes 2.5 hours to assemble the pants, the monthly salary of the workers is $2,400.00 plus an extra 35% benefits, 204 hours are worked per month. Fixed costs are estimated at $50,000.00 per month. If each pair of pants sells for $950.00, answer the next: a) What must be the output to break even? b) What should the production be to achieve profits of $25,000.00?

c)Pick a sales level above breakeven, calculate the GAO, and prove it. What it means this? d) With the same level of Q chosen in the previous paragraph, if the company requests a loan of $500,000.00 at an interest rate of 17% per year, calculate the GAF and prove it. What it means this? e) With the previous data, calculate the GAT. What does this mean?