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Vanessa sells $13 handcrafted rugs on the weekend to make extra money. Annual total fixed costs to make rugs include following items: $170 for sewing
Vanessa sells $13 handcrafted rugs on the weekend to make extra money. Annual total fixed costs to make rugs
include following items:
$170 for sewing supplies (needles, materials, etc)
$230 for advertising costs
$800 for automobile expenses (insurance, gas, etc.) to take the handcrafted rugs to boutiques
$20,000 for labor (seamstress)
Variable cost per rug includes the following:
$8 per handcrafted rug (miscellaneous items)
What is the annual breakeven point (how many rugs does Susie need to sell in one year)?
Step 1)
Step 2)
Step 3)
How many rugs does Susie need to sell per month to breakeven?
How many rugs does Susie need to sell per week to breakeven?
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