Birdie Par owns a company that makes golf gloves. She is thinking about introducing a new glove, which would require an additional fixed cost of $20,000 per year. The variable costs for the new glove have been estimated to be $5 per glove. a) if she sells the new glove for $15, how many must she sell to break even? [8 marks] b) If she sells 3,000 gloves at the $15 price, what will the contribution to profit be? [17 Marks]
