Mallory Motors sells small electric motors for $2 each. Variable costs are $1.20 per unit, and fixed costs total $60 000 per year.

a) Write out Mallory's profit equation in terms of motors sold.

b) Draw a graph of Mallory's total contribution margin and total fixed costs as volume varies. Locate the break-even point on this graph.

c) Calculate Mallory's break-even point in units.

d) What total profit would Mallory expect if it sold 50 000 motors?

e) How many motors would Mallory sell to earn $40 000 profit?