You run a business in Fort Collins, Colorado manufacturing custom replicas of new and old Harley-Davidson, Triumph, BMW, and Indian Motorcycles. These replicas are all approximately 6 inches long and 3 - 4 inches high. You travel to motorcycle rallies around the country throughout the year selling these attractive replicas. Each replica takes 2 hours to produce, has a sales price of $40.00, raw materials for the replica are $5.00, and production labor is paid at $12.00 per hour. Operating expenses are as follow: Salaries $4,000 per week; insurance is $1,250 per quarter; rent is $5,000 per month; and utilities are $1,000 per month.

1. How many motorcycle replica units must you sell each month in order to break-even?

2. How many dollars in sales does this represent?

3. What is the contribution margin for each replica sold?

4. If the goal is to make $8,000 profit each month, how many replicas must you sell?

5. With a break-even chart based on this information. What information does it provide?