In: Finance
Category Cost: Rent Monthly, cost $3000, Utilities Monthly $1100, Insurance Quarterly $1200, Property Taxes, annually $6000, Steel per shelf $9.00, forming per shelf $.25, Labor per shelf $.75 Price charged per shelf $20.00 This company will break even with monthly production of ____ units, and sales of __________
250; $5000
!0,000; $500
$5000; 250
500; $10,000
Break even units = Monthly fixed costs/(Selling price per unit - variable cost per unit)
= [3000+1100+1200/3 + 6000/12]/(20-9-0.25-0.75)
= 500 units
Sales = 500*20
= $10,000
Hence, the answer is
500; $10,000