1. You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes a cabinet maker approximately 45 minutes to make one cabinet. Each cabinet maker works an eight-hour day, earning $18 per hour. Each cabinet will use $25 in raw materials. You usually produce cabinets 20 days a month and can employ two cabinet makers. You estimate that your fixed costs are $5,000 per month.

What is your contribution margin?

How many cabinets must you make each month to break even?

What is your total monthly revenue if you want to earn a $2,000 profit?

Construct a break-even chart for the custom cabinet firm.