Suppose it costs BPM $$125$ to purchase Rida$$s headphones and operating expenses represent $35\%$ of the cost.

a$.$ If the headphones sell for $$160,$ calculate the break$-$even point for this product.

b$.$ Did BPM make a profit or take a loss for selling the headphones for $$160?$ How much was the profit or loss?

One item that hasn$$t sold well is their $6-$month music subscription. It is normally priced at $$48,$ but BPM plans to mark down the subscription by $40\%$ at the festival. To offer the product, BPM pays $$30$ in royalty fees and operating expenses for the subscription service are roughly $40\%$ of the cost.

a$.$ What is the operating loss for selling at this price?

b$.$ What is the absolute loss for selling at this price?