Chapter 13, Problem 13.5P

a)

Summary Introduction

To determine: The breakeven point for the device in months.

Introduction:

Breakeven point is a point at which, there is no profit or loss. Under this concept, each sale of product from the breakeven point will generate adequate profit. In this case, there is a dip in sale at this point and it can incur a huge loss for the company.

b)

Summary Introduction

To discuss: Whether the Person S has the GPS system installed in his car.