The Modern Mission Woodworking company has decided to offer a new line of custom dining room sets (tables with chairs). They require special wood working equipment that would cost $125,000. Further, this product line will be sold for only seven years with an anticipated 15% return on any capital investment (meaning large initial investments are amortized). This means the purchase of the new equipment will be amortized to establish the target sales/yr that will help the company make the 15% return. They plan to liquidate the equipment for this line of furniture after seven years and donate the equipment to a local high school. The target sale price for the dining sets is $4,000 each. The tables and chairs would have about $1,000 of material and require about 30 hours to make. The labor rate in this company is $40 per hour. Assume you have all the information needed to answer the three questions below.

A. What is the break-even point (dining sets per year to make and sell) that will enable them to meet their ROI goal of 15%? [3 pnts] B. What is the lowest they can sell a dining room set for and just meet his investment goal if they only sell 10 dining sets per year? [3 pnts] C. Assume 25 dining sets are sold each year (selling at $4,000/each), what is the profit per year? [4 pnts]