How many car wheels must be balanced by Mr Wharfe’s wheel-balancing business to break even, given that he charges £5 per wheel balanced and his cost structure is as follows?

Mr Wharfe works 330 days per year and he estimates he can normally cope with a maximum of 3,900 wheels balanced each year. Administration represents his wife’s wage and his accountant’s annual fee (averaged over a month).

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Mechanic's pay and perks Workshop overheads Administration costs Machinery-related costs 15 per day 30 per day (45% fixed) 118.75 per calendar month 225 per calendar month (85% fixed)