Please do not make your own assumptions when reading the instructions.
1 is pretty clear and dry just use the scenario as is. You need to use the selling price, variable costs, contribution margin, and fixed costs
to determine the break-even point. Use the appropriate formulas for each.
2 This is formula driven and you will need the information provided in #1 to answer this correctly.
3. The total variable costs are know $9,500 (do not add additional variable costs to this)
There is now another employee that you have to take into consideration
The rent remains the same
The selling price remains the same
His salary remains the same
4 This is formula driven and you will need the information provided in #1 to answer this correctly.