1. Say you have decided to start a business producing and selling $400 high-quality coats. Answer the following questions:

   (The product is high-quality coats. They will be sold at $400 apiece)

   1. The manufacturing cost per unit is $43.25 The total cost of the materials for 1,000 units is $80,250.

      1. Rent	$108,000	Fixed
         Utilities	$60,000	Variable
         Insurance	$30,000	Fixed
         Labor Expense	$156,000	Variable
         Manufacturing Overhead	$100,000	Fixed
         Selling and Distributive Expense	$20,000	Variable
         Depreciation Expense	$15,000	Fixed
         Total Expenses	$489,000

   2. Calculate how many units of your product you would need to sell to break even. Show your work.

   3. How much operating income would be desirable to earn in the first year? Calculate how many units you would need to sell to break even, and to meet your target profit.