• • the rental of a small facility will be $2,200 per month, insurance $500 per month, and other fixed costs are estimated at $1,300 per month. In this facility, she will be able to produce 100 toys per month at a variable cost for each toy of $5.00. She plans to sell them for $30 each.
  • The rent for a larger facility will be $5,000 per month, insurance $1,000 per month, and other fixed costs are estimated at $2,580 per month. In this facility, she will be able to produce 400 toys per month at a variable cost for each toy of $4.00. She plans to also sell them for $30 each.

The Assignment:

• Part 1:Calculate the break-even point for LaTricia Jones' toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points.
• Part 2:Recommend which option, based on the scenarios for the company, that you would select using a word processing program such as Word. Support your conclusion with both a written analysis and quantitative data.