Kucera Associates provides marketing services for a number of small manufacturing firms. Kucera receives a commission of 10 percent of sales. Operating costs are as follows:

Unit-level costs	$ 0.05 per sales dollar
Sales-level costs	$ 400 per sales order
Customer-level costs	$ 1,000 per customer per year
Facility-level costs	$ 75,000 per year

(a) Determine the minimum order size in sales dollars for Kucera to break even on an order. $Answer

(b) Assuming an average customer places five orders per year, determine the minimum annual sales required to break even on a customer. $Answer

(c) What is the average order size in (b)? $Answer

(d) Assuming Kucera currently serves 100 customers, with each placing an average of five orders per year, determine the minimum annual sales required to break even. $Answer

(e) What is the average order size in (d)? $Answer