Question: Andy Mendoza makes handcrafted dolls which he sells at craft

Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $25,000, whereas labor, material, packaging, and shipping will be about $10 per doll. If the dolls are sold for $30 each, what sales volume is necessary for Andy to break even?

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  • CreatedJuly 17, 2014
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