You are considering investing in a business venture that involves manufacturing and selling backpacks. Since you do not want to deal with the actual manufacturing of the product you are planning to outsource this part of the business. You are given a quote by as follows: the fixed cost for placing the order is $6000 plus an additional $10 dollars for each backpack ordered. Additionally you estimate that the design of the product will cost you an additional $2000 and that the shipping and delivery costs will be $2 per backpack You have made a preliminary market research and you believe that you can sell the backpack to the students for about $25 a piece.

How many backpacks you need to sell to breakeven?

How many backpacks should you produce?