Question 2: Break-even Analysis

You are a consultant advising a startup business. The business plans to sell a new product with a selling price of $50 per unit.

The variable cost per unit is $30, and the fixed costs are $100,000.

Critically evaluate and provide recommendations on the break-even point for the business. Critically appraise the implications of different pricing strategies and cost structures on the break-even point and profitability.

(25 Marks)