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Breaking even on a product Lou is considering offering a tailoring service at a standard price for trousers. Lou averages out the variable costs of
Breaking even on a product Lou is considering offering a tailoring service at a standard price for trousers. Lou averages out the variable costs of tailoring to be the following per trouser: 1. Raw materials/supplies = $8.00 2. Labour = $15.00 3. Ironing = $3.50 Lou attributes xed operational costs of $200 and marketing costs of $900 per month to this product and thinks the business could charge $45 per trouser. Required a. How many trousers need to be tailored per month to break even? Round to the nearest whole number. b. If 80 trousers are tailored, what is the margin of safety in dollars
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