a. In order to just break even, how much will the company have to charge for each set?
b. Based on its plant investment, the company requires an annual profit of $30,000. How much will it have to charge per set to obtain this profit? (Quantity sold will still be 5,000 sets.)
c. If the company wants to earn a markup of 50 percent on its variable costs, how many sets will it have to sell at the price obtained in part b?