Stickco sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $35,000. Last year they sold 1,000 sticks. They are considering a 30% price decrease to move or sell more sticks. Assuming all the variable and fixed costs remain the same:

(a)How many sticks do they need to sell to simply breakeven? (1 Mark)

(b)What was their profit if they did sell 1,000 sticks? (2 Marks)

(c)How much of a sales increase (%BE) would they need in order to generate the same profit, if they lower the price by 30%? (2 Marks)

(d)Calculate the minimum unit change in sales volume to maintain the same amount of profitability (BE).

(1 Mark)