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Question: Roxie's Surf Shop is expanding their product line, adding a high end surf board to their existing basic product.
Their fixed costs for the equipment needed for the new boards is $5700 per month.
The new board will cost $278 per board and they can be sold for $450.
How many new boards per month will they need to sell to breakeven quantity per month?
If the fixed costs are reduced to $4800 per month what is the new breakeven quantity?
If the fixed costs stay at $5300 and they want to have at least $1000 per month in profit how many boards should they sell?
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Provide specific suggestions along with links to relevant resources.
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