Q2. An appliance manufacturer sells grills for $37.5. The unit variable cost is $ 13.25 and the monthly fixed cost is $5000.

1. What is the break even quantity for the month ? ( Hint: Round up the Q) ( 2 marks)
2. If the variable cost is expected to rise by 11.25 % and the monthly fixed cost is expected to reduce by 20 %, what should the new price be so that the break even quantity remains the same as before? ( 3 marks)