With a selling price of $45, how do I determine the costs and the required number of toys needed to be sold before earning a profit, the break-even point using the associated costs from the following two locations: The rent for the small facility will be $3,100 per month, insurance $1600 per month, and other fixed costs are estimated at $2,320 per month. This facility has a capacity to produce 100 toys per month at a variable cost for each toy of $6.00.

The rent for a larger facility will be $6,000 per month, insurance $1,400 per month, and other fixed costs are estimated at $2,350 per month. This facility has a capacity to produce 350 toys per month at a variable cost for each toy of $6.00.