Calculate the breakeven level of activity for the computer collection and recovery service.

You are also planning to start a new service to collect customers’ broken down computers
within a 20 mile radius of the shop. Repaired computers would then be delivered to the
customer’s home. You plan to charge a flat fee of £80 for the service. It has been
calculated that, on average, the variable costs of the service will be £40 and the annual
fixed costs associated with the service will be £7,000.