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q1. Determine the firms break-even quantity of sofas. Show work.q2. put the Following measures at the break-even quantity.ATC_______AFC ________ AVC___________MC______q3. Determine the firm's new break-even

q1. Determine the firms break-even quantity of sofas. Show work.q2. put the Following measures at the break-even quantity.ATC_______AFC ________ AVC___________MC______q3. Determine the firm's new break-even quantity if it builds a new plant that raise fixed costof manufacturing to $10,000 but decreases variable manufacturing cost to $300 per sofa.Assume that average variable selling expenses, fixed selling expenses, and that the selling price of sofas remain the same as in A.

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Sales (50 sofas/week at $1000 per sofa). $50,000 Less: Cost of goods (sofas) sold Variable cost of manufacturing sofas. . . . ... .... $20,000 Fixed manufacturing cost... ..... $5,000. . . . . . .. . .. $25,000 Equals: Gross margin....... $25,000 Less: Selling and Administrative cost: Variable Selling and Administrative costs.. $10,000 Fixed Selling and Administrative costs. $5,000 $15,000 Net income... $10,000

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