Q:John owns a service station in New York. John is considering leasing a machine that will allow him to offer customers the mandatory emissions test. Every car in the state must be tested every two years. The machine costs $6,000 per month to lease. The variable cost per test (i.e., per car inspected) is $10. The amount that John can charge each customer is set by state law, and is currently $40.

i) How many inspections would John have to perform monthly to break even from this part of his business?

ii) How many inspections would John have to perform monthly to generate a profit of $3,000 from this part of his business?