Question: help me please i dont understand this. %X Exit Fullscreen 'Competency Break Even The Safe Splitter Making splitting firewood while camping safe and easy. you

help me please i dont understand this.

%X Exit Fullscreen 'Competency Break Even The Safe Splitter \"Making splitting firewood while camping safe and easy.\" you and a friend are going into business together fabricating firewood splitting fixtures. This is what you know so far: Employees earn $22 an hour. start-up costs will be covered by Boot Strapping and loans from friends or family (Patient Capital) and will not exceed a loan period of 24 months. Allloans will be paid monthly. There will be no financing costs. Every month you will see a 10% increase in sales. It takes 45 minutes to make one kit You are to assume sales price of $70 and first month sales 50 ut Start-up Costs, Fabrication Table 1100 Mig Welder 725 Plasma Cutter 850 Air Compressor 900 Bench Grinder 125 Angle Grinder 50 Metal Saw 700 Misc. tools $1000 Variable Costs Steel $25 per kit Welding Wire $ 44 per25 kits AR/CO2 gas mix $80 per 60 kits Paint $20 per 24 kits Electricity $3 per kit. Fixed Costs Rent $1000/month Salaries $2400/month Electricity $400/month Social Media services $400/month Deliverables (in Excel): * Determine our breakeven point in terms of units sold. Determine when we will break even in terms of months in business

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!