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Buzzy Bee Meadery is launching a new alcoholic drink made from Honey. This drink is being sold to Coop liquor stores in Alberta. The company

Buzzy Bee Meadery is launching a new alcoholic drink made from Honey. This drink is being sold to Coop liquor stores in Alberta. The company has been selling the mead from their plant, but this move to wider distribution is going to require some additional expenses and growth. The company is assessing their investment and costs to determine the break even for their mead. Using the information below, calculate the breakeven quantity of units that they must sell. Retail Price: $5.99 Margin (Coop): 20% Product cost per unit: $1.04 Factory Upgrade Costs: $40,000 Advertising Expenditures: $15,000 Administrative Costs: $30,000 Labour costs: $22/hour Packaging formate: 6 units per case Total estimated market size: 15,000 cases

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