Calculate break-even output level

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Reference no: EM1354733

Amish Enterprises makes wooden play sets. The company pays annual rent of $350,000 per year and pays administrative salaries totaling $120,000 per year. Each play set requires $300 of wood, ten hours of labor at $50 per hour, and variable overhead costs of $50. Fixed advertising expenses equal $40,000 per year. Each play set sells for $2,350. What is Amish Enterprises' break-even output level?

a) 340 play sets
b) 217 play sets
c) 159 play sets
d) 270 play sets
e) 500 play sets

Reference no: EM1354733

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