Old Dutch Company produces potato chips in their manufacturing facilities in Toronto. The company sells each large bag of chips for $5.50 and the costs are indicated below:

Potatoes $2.50 per bag

Spices $0.75 per bag

Other $0.15 per bag

Rent $8,000 per month

Salaries $9,500 per month

The company also pays it's sales staff $0.35 per bag that is sold.

Required: 8 marks

A) How many bags of chips would the company need to sell to break even?

B) Calculate the break even point in sales dollars

C) If the company wants to earn a profit of $100,000 how many units will it need to sell?