Preliminary plans are underway for construction of a new stadium for a major l

Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of
the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $300000. The fixed
construction cost for the upper-deck area is estimated to be $4500000 with a variable cost of $150000 for each box constructed.

a. What is the breakeven point for the number of luxury boxes in the new stadium?

b. Preliminary drawings for the stadium show that space is available for the construction of up to 50 luxury boxes. Promoters indicate that buyers are
available and that all 50 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? What profit is
anticipated?