Question
You own a business that specializes in designing and producing roofs for houses in central Texas. Your annual costs include office rent of $14,400, salaries
You own a business that specializes in designing and producing roofs for houses in central Texas. Your annual costs include office rent of $14,400, salaries for four designing engineers of $240,000, design software costs of $12,000, and other overhead costs of $3,000. An average roof in this region is priced at $3,500. It costs $1,200 in raw material, $1,100 in labor, and $100 in other expenses (for example, purchasing building permits). What is the minimum number of roofs you need to sell to earn a profit? What can you do to reduce the break-even level of sales?
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