Tasty Break', the sandwich business, has fixed costs of 1,000. The cost of producing a

sandwich is 1 and the price charged for each sandwich is 2.

1. Give one example of a fixed cost for 'Tasty Break' and one variable cost.

2. What happens to the breakeven point if:

a) The price of a sandwich is reduced to 1.50

b) A cheaper bread supplier is found, reducing the production costs to 70p

c) Fixed costs increase to 1,100 per month?