Westside Bakery is considering opening a new branch in Abingdon, IL. Westside will initially sell only loaves of wheat bread. The fixed costs including building, ovens, and displays total $60,000. The variable cost for each loaf of bread is $.50. Westside figures to sell loaves of wheat bread for $2 each.
1) What is the breakeven point? (Write only the number, do not include units)
2) Assume that Westside estimates the demand to be 6000 loaves per month. What profit or loss is anticipated with this level of demand for the year? (Simply use 12 months to calculate the year's demand and do not include units).
3) Selling 5000 loaves per month, what is the minimum price per loaf that Westside must charge in order to breakeven for the year?