1. Logan loves cats, and runs a luxury cat treat business.  
   • He expects to sell his luxury cat treats to specialty pet stores for $8 a bag.
   • He estimates that he can easily sell 100,000 units per year
   • His gross margin is 60%
   • His other variable costs are $2 per bag
                                                                           
2.  How much can Logan afford to spend on fixed costs and still break-even?