5. An ophthalmology practice is deciding whether to offer prescription eyeglasses for sale in-house. The new service would require the training and hiring of additional personnel, inventory for glasses and frames, and some minor space alterations. The space used in the office would be a charge allocated to the program. The costs for this new service are:

How much volume does the group need to break even if it charges $100 per pair of eyeglasses? If it charges $200?

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Variable Costs (Electricity, Labor, Supplies) $80 per Completed Pair of Eyeglasses Total fixed costs $36,000