Paul plans to launch his own guitar company where he plans to make guitars from locally sourced
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Question:
His close friend who gave him more than 50% of the money asks him at what price will he be selling the guitars. Paul responds flippantly $100+/-per guitar, believing that he will be making profit.
His friend is astute and says "That is great, but when will you break even and when can we who have invested in your shop start seeing some of our capital investment back?" How many guitars does Paul need to sell to break even?
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119036432
7th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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