Home Security Specialists Inc. assembles and packages home security systems from standard components. Its basic home security system is sold to customers who prefer to install the system themselves in their own homes. Each system is assembled from components costing $1,400 per system and sells for $2,000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month.
a) How many basic security systems must be sold each month to break even on this product line?
b) What will be the profit or loss for a month in which 15 basic home security systems are sold?

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The Answer of Home Security Specialists Inc. assembles and packages home security systems from standard components. Its basic home security system is sold to customers who prefer to install the system themselves in their own homes. Each system is assembled from components costing $1,400 per system and sells for $2,000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month.
a) How many basic security systems must be sold each month to break even on this product line?
b) What will be the profit or loss for a month in which 15 basic home security systems are sold?