sells hand-woven blankets for an average price of $30 per blanket. He buys the blankets from weavers at an average cost of $21. In addition, he has selling expenses of $3 per blanket. He rents the for $300 per month and pays one employee a fixed salary of $500 per month.
1.Determine the number of blankets to sell to break even.
2.Determine the number of blankets to sell to generate a profit of $1,000 per month.
3.Assumming that he can sell his own blankets at a total variable cost of $16 per blanket, but that he would need to hire one additional employee at a monthly salary of $600.
A. Determine the number of blankets to sell to break even.
B. Determine the number of blankets to sell to generate a profit of $1,000 per month.
