complete this breakeven analysis based on this information.

Business Description

Nate's Creative Woodworking is a small business that specializes in crafting custom wood furniture and d$$cor items. The business is based in a small workshop in the owner's backyard, and it operates as a part$-$time venture alongside the owner's full$-$time job. Nate's Creative Woodworking caters to a local clientele, primarily individuals and businesses seeking unique and personalized pieces.

Fixed Costs

Rent: Nate's Creative Woodworking does not incur any rent expenses as the workshop is located in the owner's backyard.

Owner Salary: As a part$-$time venture, Nate does not draw a regular salary from the business. However, the owner's time and effort are considered a fixed cost for the purpose of break$-$even analysis.

Owner Taxes: Owner's taxes are estimated at $20\%$ of the owner's assumed annual salary of $$15,000,$ resulting in an annual fixed cost of $$3,000.$

Advertising: Nate's Creative Woodworking primarily relies on word$-$of$-$mouth marketing and social media presence, incurring minimal advertising expenses.

Equipment Lease: Nate has invested in essential woodworking tools, such as power saws, sanders, and drills. The annual equipment lease cost is approximately $$1,200.$

Miscellaneous: Miscellaneous fixed costs include items such as business licenses, insurance, and utilities, amounting to approximately $$500$ per year.

Profit Component

The desired profit component for Nate's Creative Woodworking is set at $$15,000$ per year. This amount represents a fair compensation for the owner's time and effort while ensuring the business remains sustainable.

Summarizing Findings

Based on the break$-$even analysis, Nate's Creative Woodworking needs to sell approximately $90$ pieces of custom furniture or d$$cor items per year to break even. This translates to selling an average of $7\mathrm{.}5$ units per month or $1\mathrm{.}75$ units per week. The analysis also indicates that the business has the potential to generate a profit of $$15,000$ per year if it can reach its sales target.

Optimize pricing strategies: Evaluate pricing strategies to ensure they align with the value of the products and remain competitive within the local market.

Monitor expenses: Regularly review expenses and identify opportunities to reduce costs without compromising quality or customer satisfaction.