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You are a banker and a young gentleman asks you if he can secure a loan to make ski racks. He has some basis expenses:

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You are a banker and a young gentleman asks you if he can secure a loan to make ski racks. He has some basis expenses: Rent - $72,000/ year Production Labor - $36/unit Salary - $60,000/year Raw Materials - $36/unit Gas - $150/month Utilities - $200/month He will sell his ski rack for $90/unit. The owner indicates he can build and sell 600 units/month. Use Profitability and Break Even Analysis to help you make a decision on whether or not you would loan him money. Please provide a recommendation

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