Question: You manage a manufacturing facility that makes roller skates. Fixed monthly cost is $67,000 in mortgage, $3,000 per employee on average in salaries (you have
You manage a manufacturing facility that makes roller skates. Fixed monthly cost is $67,000 in mortgage, $3,000 per employee on average in salaries (you have 50 employees) and $24,000 in other expenses. The cost of raw materials is $2 per skate, and other costs per skate average to about $2. You sell the skates for $22 each. How many roller skates do you need to sell to reach breakeven?
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