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

1. Determine the firms break-even quantity of sofas. Show work nor answers only

2. put the Following measures at the break-even quantity. ATC_______AFC ________ AVC___________MC______

3. Determine the firms new break-even quantity if it builds a new plant that raise fixed cost of 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.