Pharmaceuticals makes a number of generic versions of drugs. It produces the generic version of Xyzal (anti-histamine), a branded drug which patent expired. MethRUS invested $100,000 to obtain FDA approval (not refundable, one-time fee) and $50,000 to certify one of its production lines for its production (one-time fee, not-refundable). Production of the drug will cost $1,000,000 in total fixed cost. In addition, per unit cost (MC) of the pill is $0.10.

Q: If forecasted sales are 10 million tablets, what is the breakeven price? Show your work

Q: If the generic Xyzal sells for $0.25 per pill, should MethRUS give up or discontinue selling this product? Explain. Hint: compare this price to the breakeven price.