You own a Brownie shop. You have 2 employees that you pay a salary of $1,000 each, every month. The machine to make them costs $100/ month to lease. You can make 100 Brownies with the machine using $20 of ingredients. Utilities (electric, heat etc.) and Rent for the shop is a total of $1,750 per month. There are no other costs. Brownies sell for $3 each. A: How many Brownies would you need to sell to break even in a month? B: Instead of just breaking even, if you make 3000 Brownies in a month - what is your Gross Margin and your Operating Profit for the month?

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A To calculate the number of brownies needed to break even in a month we need to consider the total ... View the full answer