The Mix Cement Company sells bags of cement for $32 per bag. Fixed costs of production are $55,000 and variable costs are $10 per bag.

a. What is Mixs break-even point in units and sales dollars?

b. How much profit will the company earn at sales levels of (i) 3,000 bags and (ii) 4,000 bags?

c. How many bags would Mix have to sell to earn a profit of $70,000?