Q1. Determine the firms break-even quantity of sofas. Show work.Q2. Put the following measures at the break-even quantity. 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.

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