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Liam and Noah are owners of Nolas Mardi Gras Bead LLC. The following is a chart of their costs to produce a string of wisdom

Liam and Noah are owners of Nolas Mardi Gras Bead LLC. The following is a chart of their costs to produce a string of wisdom passed out during the infamous Spring event in their hometown. If they charge $5.00 per necklace and target a $5,000 monthly profit level, how many necklaces must they produce?

Cost Category

Payment Basis

Cost ($)

Rent

Monthly

$10,000

Salaries Overhead

Monthly

$20,000

Employee Benefits

Annual

$36,000

Insurance

Quarterly

$6,000

Property taxes

Annual

$24,000

String

Per Necklace

$.50

Biodegradable beads

Per Necklace

$1.00

Labor

Per Necklace

$1.00

Packaging and shipping

Per Necklace

$1.00

28,000

8,400

21,333

24,667

4,992

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