Question
Angie is expecting a baby next month and decides to work at home after delivery. She pays herself $10 per hour and it takes her
Angie is expecting a baby next month and decides to work at home after delivery. She pays herself $10 per hour and it takes her 10 hours to make a quilt. She estimates that she can work on average 30 hours per month after the baby is born. She purchases a used quilting machine for $800 and the materials needed to make one of her quilts is $85. She estimates that she can sell the quilts for $250 each. How long will it take her to break even? If she needs to spend $45 a month on internet advertising is it worth her while to make quilts? If she finds that quilts sell for $200, is her business sustainable?
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