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.

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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