You are going to open a business selling customer cabinets. You can sell each cabinet for $80. It takes a cabi
Friday, July 11th, 2003jmelee85
You are going to open a business selling customer cabinets. You can sell each cabinet for $80. It takes a cabinet make about 45 minutes per cabinet. Each cabinet maker works 8 hours a day, earning $18/hr. Each cabinet uses $25.00 in raw materials.You normally produce cabinets 20 days in a month. You estimate that your fixed costs are $5,000 per month.
You are going to open a business selling customer cabinets. You can sell each cabinet for $80. It takes a cabinet make about 45 minutes per cabinet. Each cabinet maker works 8 hours a day, earning $18/hr. Each cabinet uses $25.00 in raw materials.You normally produce cabinets 20 days in a month. You estimate that your fixed costs are $5,000 per month.
What is your contribution margin?
How many cabinets must you make each month to break even?
What is your total monthly revenue if you want to profit $2,000?
Construct a break even chart for the custom cabinet firm?
Yes, this is a homework question… it is actually a practice problem…please help.
It is for a business finance class, not math…

