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Pricing and Profit Relationships and BreakEven Analysis 1. If both the sports car and the SUV are priced at the low end of the pricing range, which product will generate the highest total profit if unit sales are identical to last year? Sports car Their profit will be the same Neither, both will lose money suv 2. If the price of the sports car war was raised to $27,500, which product would generate the highest total profit if unit sales are identical to last year? Sports car Neither, both will lose money SUV Their profit will be the same 3. If Howl Motors can raise the price of their SUVs to the high end of the range, but lose 10 percent of their unit sales, how much more total profit will they make than if they sold the higher number of units at the low end price? Assume unit costs stay the same. Note: You will need to do some calculations on your own to answer this question. $11,218,470$23,798,300$6,917,583$21,418,470 4. If Howl Motors can raise the price of their sports cars to the high end of the range, but lose 20 percent of their unit sales, how much more total profit will they make than if they sold the higher number of units at the low end price? Assume unit costs stay the same. Note: You will need to do some calculations on your own to answer this question. $12,100,000$8,040,130$16,500,000 5. If both products were priced at the low end of the range, how many sports cars would Howl Motors have to sell in order for that product to be as profitable as their SUVs? Assume unit costs stay the same. 4,0002,3134,0803,104 6. If Howl Motors't total fixed costs are $5,000,000, what is the break-even point for both sports cars and SUVS at the lowest prices? Recall that the formula for break-even analysis is: Break-even point = Total fixed costs / (Selling price per unit - Cost per unit) Sports cars: 2.0001,000500833 SUVs: 8332,0005001,000 7. What is the break-even point for sports cars and SUVs at the highest end prices? Sports cars: 1,0293572,000500 SUVS: \begin{tabular}{ll} \hline 1,029 \\ \hline 2,000 \\ \hline 357 \\ \hline 500 \\ \hline \end{tabular}

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