Fre has decided to expand his garden supply manufacturing business. He has an available factory site that is presently costing him $40,000 per year in taxes and maintenance. He has made a deal with stellar supply company to provide him with the necessary material to produce 1000 garden hoses. Stellar has agreed to supply the material for $6000 less 2% for quantity discount. Fred's shop steward has informed him that labour costs to make the capacity 1000 garden hoses will amount to $10,000.

a) fred expects that it will take 3 months to produce the garden hoses and he intends to market them at $29.99 per hose. How many hoses must fred sell to break even?

kieran6479

What do YOU think the answer is?

Make an attempt at the answer, and then we will assist you.

maheshwari

According to Me Break Even Is the level of profit before tax, where equity shareholders are neithr benefited nor making any type of losses. they r at a level where there is no profit or no loss - Maheshwari Ahuja (CA Student) .

For further queries contact me at