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1. Vanessa sells $13 handcrafted rugs on the weekend to make extra money. Annual total fixed costs to make rugs include following items: Step 1)
1. Vanessa sells $13 handcrafted rugs on the weekend to make extra money. Annual total fixed costs to make rugs include following items: Step 1) Step 2) Variable cost per rug includes the following: Step 3) . $8 per handcrafted rug (miscellaneous items) What is the annual breakeven point (how many rugs does Susie need to sell in one year)? . How many rugs does Susie need to sell per month to breakeven? How many rugs does Susie need to sell per week to breakeven? Step 1) $170 for sewing supplies (needles, materials, etc) $230 for advertising costs $800 for automobile expenses (insurance, gas, etc.) to take the handcrafted rugs to boutiques $20,000 for labor (seamstress) 2. Wilson sells bobble heads for $25 each. Annual total fixed costs to make bobble heads include following items: $550 for supplies (wood, glue, springs, paint, materials, etc) $358 for advertising costs $800 for equipment (wood cutting machine, saw blades, etc.) Step 2) Variable cost per bobble head Includes the following: $1,200 for automobile expenses (insurance, gas, etc.) to take the bobble heads to various fairs and baseball games $17,000 for labor $12 per bobble head doll (miscellaneous items) What is the annual breakeven point (how many bobble heads does Wilson need to sell in one year)? Step 3) How many bobble heads does Wilson need to sell per month to breakeven? How many bobble heads does Wilson need to sell per week to breakeven?
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