Break-Even Analysis: Total Cost = Total Revenue

Bike-for-Health, Inc., produces tandem bicycles.Its costs have been analyzed as follows:

Variable Costs:

Materials$30/unit

Manufacturing labor3 hours per unit ($10/hour)

Assembly labor1 hour per unit ($10/hour)

Packing materials $5/unit

Packing labor20 minutes/unit ($9/hour)

Shipping cost$22/unit

Fixed Costs:

Overhead labor$50,000 per year

Utilities$15,000 per year

Plant Operation$65,000 per year

Selling Price:$200 per unit

A. Calculate the break-even quantity (Q) for Bike-for-Health, Inc.?

B. What would be the total revenue (TR) that is generated at this break-even quantity?