Jason is a student who builds birdhouses which he sells for $50 each. The time he spends buiding the birdhouses could be spent tutoring students in his economics class for $25 per hour. Jason's cost for materials is $7 per birdhouse. His cost of renting a garage for his workshop is $150 per month. He also borrowed $1,500 from a friend to buy power tools. His friend is charging him 8% interest per year. For the month of January Jason spent 20 hours bullding the birdhouses and sold 15 of them. If Janson was able to negotiate the monthly rent for the workshop, how much less should he ask for to allow him to just break even in Janvary i.e, earn an economic profit of $0 ?

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To calculate Jasons total costs and breakeven rent lets break down his costs 1 Cost of Materials Jas... View the full answer