Zahra Mahyan Kunal Singh s you u View Options 1) A manufacturer is considering a new List of formulas: production. The fixed cost is estimated to be Profit = Revenue - Total cost $110,000. Variable production and material Revenue = Selling price * volume costs are estimated to be $14 per unit. Demand Total cost Fixed cost + cost per item . volume over this product is estimated to be 7500 units. Break evel volume = (Fixed cost)/(Unit The company plans to sell to the local shops for contribution margin) $35 each. (16 marks) (15 min) a) What is the breakeven point? b) What profit or loss can be anticipated with a demand of 7500 units? c) With a demand of 7500 units, what is the minimum price per product that the company must charge to break even? d) If the marketing department manager believes that the price per product could be increased to $45 with losing 15% of customers (15% of 7500 units), what action would you recommend? What profit or loss can be anticipated