Kay graduated from MCC and decided to start her business selling Teenie-Tinee-Tots clothing. She intends to later create her own line to compete with the brand Osh-Kosh (Mi Gosh! meaning overpriced). However, her immediate concern is to stay in business for the very short- term. She has rental expense of $2,000, insurance of $750, and salaries and wages of $1,750. The average selling price of her merchandise is $25, and variable costs will be about $10. Consider that she wants to figure out her monthly budget and profitability, answer the following: a. How many pieces must she sell to breakeven?

b. What would be the dollar value of the number of pieces?

c. If she wants to make a target profit of $7500, how many pieces must she sell?

d. If Kay sells only 200 units, she would realize an operating loss. What would be the amount of her loss?