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How many rugs does weaver need to produce

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Weaver Company makes small custom area rugs that incorporate the image of your pet. Each rug requires $10.00 in DM and $10.00 in DL. Weaver has to pay $4,800 in rent for the facility per month. Each rug sells for $30.00. How many rugs does Weaver need to produce and sell each month to break even? How many rugs does Weaver need to produce and sell each month to achieve a before-tax profit of $4,000? If the relevant tax rate is 20%, how many rugs does Weaver need to produce and sell each month to achieve an after-tax profit of $7,000? Calculate the margin of error in dollars for the previously stated question.

Reference no: EM133216365

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