Warner Tool Company produces class rings to sell to college and high school students.These rings sell for $75 each, and cost $35 each to produce. WarnerTool Company has fixed costs of $50,000.
a) Calculate Warner Tool Company's breakeven point?
b) How much profit (loss) will WarnerTool Company have if it sells 1,000 rings? 8000 rings?
c) Warner Tool Company'spresident, Dr. John Robinson expects annual profit of $100,000. How many rings must be sold to attain this profit?