Muffin, Inc., located in Nauvoo, Illinois, manufactures high-end trumpets. The firm’s cost accountant, Lisa, has been assigned by the CEO to determine how many trumpets Muffin, Inc., needs to make and sell in order to break even. She is given the following data:
Trumpet sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500
Variable cost per trumpet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900
Production worker salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,200
Determine how many trumpets Muffin, Inc., needs to make and sell in order to break even.