Lauren owns a beauty salon.Laurens fixed costs are $15,000 per month.The average variable cost for the beauty supplies she sells is $10 per unit.The average selling price of a product that the salon sells is $15 per unit (all in U.S dollars). What is the breakeven sales volume?

Referring to the above problem.Suppose Lauren plans to expand her business.The new fixed cost would be $20,000.The average variable cost reduces to $9per unit and sales price remains at $15 per unit. What is the new breakeven sales volume? At what sales volume would Lauren be indifferent to the capacity scenarios outlined in both problems?