Please separate your answers by the parts of the question. NOTE: the 250+ word minimum is waived for this assignment.

***For some practice on this assignment, you could visit __your textbook’s online site (Links to an external site.)Links to an external site.__ and do one of the Chapter 13 exercises (this is from an earlier edition of the textbook, so the Chapter numbers do not align)!

First, let’s try a couple of basic break even questions. Remember that you can find the **break even point formula** in the Week 6 Lecture.

****Please be sure to “show your work” in your answers to all of the following questions to explain how you got your answers:*

**Emma owns an Internet business where she sells weatherproof car floor mats. Her monthly fixed costs are $50,000. The average price per unit is $25 and the average variable cost per unit is $15. What is her break-even point?**

*Remember that your answer will be in “units,” not “dollars,” as you are finding the number of items that need to be sold in order to break even.*

**Andrew rents rooms in his hotel for an average of $91 per night. The variable cost per rented room is $38. His fixed costs are $59,000 per month. How many rooms does he have to rent per month in order to break even?**

*In this case when you do the calculations, your answer will not be a whole number – there will be a decimal. In break even calculations, you must always round your answer up to the next highest whole number, because you cannot sell a fraction of an item. *

Now, let’s try to break down the various costs business owners have into Fixed Costs and into Variable Costs. You may want to re-read the Lecture and/or the textbook to refresh your memory on this one.

Julia owns a sub sandwich shop and has the following costs each month:

- Labor costs (management & workers) = $8,000
- Insurance = $1,000
- Rent = $1,200
- Utilities = $500
- Average cost of ingredients/packaging
*for each sub*= $1.17

**Julia sells subs for $6 each. How many subs will she need to sell to break even each month based on the costs listed above?****In order to make that break even number more manageable, Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients/packaging down to $0.98 per sub. If all of the other costs remain the same, what would the new break-even point be?****Julia decides to reposition her sub shop as “upscale” with fresher meats and vegetables, along with premium packaging for the subs. Her new price point is $10 per sub, but her variable costs have risen to $4.11 per sub. If all other costs remain the same, what is the break-even point now?**