Woodworks Co. produces hand-made wooden chairs and operates in a workshop based on the outskirts of Brighton.
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Question:
Woodworks Co. produces hand-made wooden chairs and operates in a workshop based on the outskirts of Brighton. The fixed cost of operating the workshop for a month is £9,000. Each unit requires direct materials costing £80. Also producing one unit requires one labor hour for each carpenter. The carpenters get paid £34 per hour. The carpenters are all on contracts, and they will on get paid if they work in the workshop and they will be paid per hour. The chairs are sold to the customers online for £150 each.
What are the business's break-even units (number of chairs)?
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ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan
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