How many containers should the company sell to break even

Reference no: EM132173592

Question: A newly incorporated company intends to produce plastic containers. A machine with a production rate of 200 containers per hour has an initial cost of $50,000. Other costs associated with the production are

Raw material for one container-$5.

Machine operator-$10 per hour for 8 hours a day production

Hourly electricity used by the machine-$1/hour

Building to house the offices and production facility-$150,000

Personnel salary, advertisement, utility, and other costs

If the containers can be sold at a price of $10 per unit, how many containers should the company sell to break even? Do not consider depreciation and tax.

Reference no: EM132173592

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