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Break-Even Analysis: You have been asked to calculate how many units need to be sold to break
even, based on the costs provided in task #3. Assume that only one conference will be attended
and the estimated expenses associated with this conference are on target. Use the information
in task #3 except
do not consider taxes.)
Task 3 information:
budgeted income statement, assuming 600 units to be produced and sold, a per
unit selling price of $85, an income tax rate of 28% and the following information.
a.Cost of goods sold of $35 per unit
b.Labor = $400/month
One part-time employee will be hired to take care of packaging and shipping.
This employee will be paid $10 per hour. He or she is estimated to work 40
hours total per month.
c.Advertising fees = $3,000
d.Bank fees = $200
e.Phone/internet = $150 per month
f.Shipping = $3 per unit
g.Utilities = $100 per month
h.Office Supplies = $900
i.Conference Exhibitor Fee = $3000
j.Travel Expenses for Conference (e.g. airfare, meals, taxi) = $120
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