The company has budget to produce 250000 shirt in the current year. It is unable to produce more than this number. The company also expect the fixed cost will cost 5 million for this year. These fixed cost will mostly relate to the cost of renting a new factory to produce the shirt in. If the company decide to not make shirt, these factory will not be rented. Calculate the varable coast per unit Calculate the break even point in unit if the market research indicates these shirt will sell for 40$ each Advise mangement on whether the company should produce this product (explain)

Direct meterial cost	10	Per meter
Each shirt use	2	Meter
Direct labour costs	$15	Per hour
Each shirt use	0.2	Hour(12 minutes)