Read this scenario: Emma wants to open a candy shop. After researching competitors in the area, she estimates she can charge an average of $1.50 per candy bar. Emma wants the shop to break even within one year of opening. She needs to estimate her fixed and variable costs and the number of purchasing customers (units) required to break even. The following are Emma's costs: candy per sale = $0.25; annual rent =\$18,000; annual utilities =\$ 1.75 annual Intemet / p * hone = $1,250; annual wages =\$55,000 annual insurance =\$ 4.5 equipment =\$10,000.

4. In the space below, write your answer, explaining the math you used to solve for Emma's break-even point.

2. Determine which costs are fixed and which are variable.

3. Solve for Emma's break-even point.