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?

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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) .

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