Please refer to your textbook and class discussions. 1. The Shopping Bag is a thrift store that sells used clothing. Assume that variable costs associated with selling each item on average is $0.50. Average selling price of each item is $2.50. The store has the following expenses incurred on a monthly basis: Labor/payroll: $900 Telephone/Internet: $50 Office supplies: $25 Other supplies: $25 Assume that there are no taxes; Show all your calculations for all questions for receiving credit: a) How many clothing items should the store sell per month to breakeven? a) How much revenue per month should it make to breakeven? Quantity multiplied by selling price b) How much revenue per month should it make to create a profit of $2000? 2. When breakfast cereal prices (across all brands) rose from $2.00 to $2.25, the sales for this category declined from 22000 units to 20000 units. Based on this data, what is the price elasticity for this category? Show your calculations. (5 points) 3. The cost of a product to the retailer is $200, markup is 50%, and markdown is 30 percent. What is the final selling price? Show your calculations. (5 points)