5. (see Chapter 5 Ex 8.) You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes a cabinet maker approximately 45 minutes to make one cabinet. Each cabinet maker works an eight-hour day, earning $18 per hour. Each cabinet will use $25 in raw materials. (You usually produce cabinets 20 days a month and can employ two cabinet makers). You estimate that your fixed costs are $5,000 per month. a) What is your contribution margin (CM)? (hint: each cabinet takes 0.75 hrs @ $18 per hr) CM=PVC b) How many cabinets must you make each month to break even? See page 138;BEQ=FC/PVC c) What is your total monthly revenue if you want to earn a $2,000 profit? BE$+ Profit =(FC+ Profit )/(1VC) d) Construct a break-even chart for the custom cabinet firm. At what level of sales do you break even? See Spreadsheet "Constructing Fig 5.1", on Ex 8