Seville machine shop fabricates polished steel casings. They currently sell 8,000 casings at a selling price of $110.They have the following cost structure:

Variable costs per unit

$40

Fixed costs

$350,000

Required (each requirement is independent):

a.What is the breakeven point in units?

Break-even point in units:

b.Suppose that if they decrease their price to $100, they could increase sales by 10%. What would the change in profit be if they decrease their price to $100?

Change in profit if price is $100

(be sure to say whether profit increases or decreases):

c.What is the minimum price that Seville would be willing to charge in order to achieve an increase in unit sales of 10% (round to the nearest cent)?

Minimum price for increase in unit sales of 10%:

d.Suppose that Seville can purchase a machine that would increase fixed costs to $440,000 and decrease unit variable costs to $28 per unit.At what level of production and sales would Seville be indifferent between the old machine and the new machine?

Level of production and sales (in units):