What is amish enterprises break-even output level

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Amish Enterprises makes wooden play sets. The company pays annual rent of $400,000 per year and pays administrative salaries totaling $150,000 per year. Each play set requires $400 of wood, ten hours of labor at $70 per hour, and variable overhead costs of $100. Fixed advertising expenses equal $100,000 per year. Each play set sells for $3,200. What is Amish Enterprises' break-even output level?

340 play sets
325 play sets
297 play sets
258 play sets

Reference no: EM13301407

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