Problem:

Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500.

Question 1.) Compute the break-even point in units.

Question 2.) Compute the total sales at the break-even quantity.

Question 3.) What are the total variable costs at the break-even quantity?

Please provide step by step solution for each question.