Question
Surfer Brad has decided to sell custom surfboards. He was able to rent a workshop/garage in an industrial park for $3,000 a month, which includes
Surfer Brad has decided to sell custom surfboards. He was able to rent a workshop/garage in an industrial park for $3,000 a month, which includes all utilities, and he already owns the equipment and tools he needs. He anticipates being able to sell his boards for $800 each. The raw materials (foam, fiberglass, etc.) will cost an average of $200 for each board, and he plans to spend $100 sales commission per board to the surf shops who have agreed to sell them to the public. Assuming these are all the costs and revenues, what will be Brads monthly break-even point in units? Please show your calculations.,
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