A factory that manufactures and sells computer hard-drives pays $20,000 per month for rent and utilities, $120,850 per month for management salaries, and $37,500 per month to rent and lease equipment. The variable costs are $55 per unit for material and $120 per unit for labour. The factory needs to sell 2445 units to break even.

a. What is the selling price per hard-drive?

b. What is the total revenue per month to break even?

AppendixLO1