You plan to start a business selling premium kitchen cabinets you will manufacture in a small shop in your back yard. You estimate that you have fixed

costs associated with these activities of $500 per month. You estimate the cost of lumber and other wood for each set of cabinets to be $1350. Supplies

including clasps, hinges, nails, and screws cost $75 per set of cabinets. You pay a local teenager $12.00 / hr to do sanding and staining of the cabinets,

and he works 5 hours on each set of cabinets. You would like to pay yourself about $800 for each set of cabinets sold. As there are only 2 employees, you can

realistically only build 2 sets of cabinets a month. Any profit made once you clear expenses will go into owners equity.

Calculate the break-even point for this operation, and detrmine the price you will set for each set of cabinets. Make sure you show all work and state assumptions.