The Global

Sports Center is contemplating producing a new pair of mountain climbing boots

that would sell for $150 per pair. The

per-unit variable cost is $80 and the fixed cost per year allocated to this

product is $70000. The manager

estimates that annual sales of this product would have a mean of 10000 units

with a standard deviation of 2000 units.a)

What is the breakeven point?b)

What is the probability of at least breaking

even?c) What volume must be sold to

obtain a profit of $500000?d) What is the profit when 12000

pairs are sold?e) If the company has decided to produce the boots if the probability

of a profit of $500000 or more is 50% or higher what should they do? Base

your answer on a probability.