You have been asked to calculate how many units need to be sold to break even, based on the costs provided BELOW. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79.

 

Advertising Fees = $4,000

Labor = $400/month (One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month)

Packaging Supplies = $3,000

Office Supplies = $800

Phone and Internet Service = $115/month

Product Supplies = $9,000

Shipping Fees = $1,000/month

Conference Exhibitor Fee = $3,000

Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200

Utilities for the Home Workshop = $105/month

Answer rating: 100% (QA)

To calculate the breakeven point we first need to consider all the costs involved There are two type... View the full answer