MANAGEMENT ECONOMICS BREAK-EVEN PROBLEM The Maximus Mint Company (MMC) each year sells specially made sets of commemorative coins to the general public and coin collectors. The table below contains cost and revenue information for MMC Fixed Costs Preparation and distribution of order forms Depreciation on order processing equipment Depreciation on coin prep. & pkg. equip. S 80,000 10,000 30,000 20,000 80,000 Rent Overhead Expenses Total fixed costs S 220,000 Variable Costs per Set Preparation of coin blanks (labor& material) Stamping Coins (labor) Packaging Coins (labor & material) Mailing costs General and administrative costs 50 20 10 1.40 80 $ 3.00 Total variable costs per set Price per set 5.00 a) Determine the number of coin sets the MMC must sell in order to breakeven b) How many sets must the MMC sell in order to show EBIT of $400,000? c) Suppose the Mint purchased new processing equipment, increasing depreciation expenses by $20,000. What would be the new breakeven number of coin sets the MMC must sell? How has the Total Operating Cost curve changed? d) Starting with the original fixed cost, variable cost, and price given above, suppose now that the mailing costs per set increase by $0.50. What would be the new breakeven number of sets the MMC must sell? How has the Total Operating Cost curve changed? e) Using the original data, construct a graphical operating breakeven analysis based on the information given. Label all items on your graph. Show all your calculations