Queens and Kings Inc. sells high quality chess sets (with a clock) for $76.00. The fixed costs for the business are $72,000 and the variable cost per set is $52.00. Determine: (7 marks total)

1. The number of sets needed to be sold to just breakeven (1)

2. The amount of profit they earn if they sell 5,000 sets (1)

3. If they now decide to increase the price by 40%, what is the new total volume needed to sell to make the same profit in part b. (3)

4. What is the decrease in volume from 5,000 to in part c, after the 40% price decrease allowable (IE Can sell x amount less then before? (1)

5. What is the percentage decrease in sales allowable in part d (1)