Reference no: EM132591402

Question - Surfer Tom is going to sell his custom surfboards. He was able to rent a garage from his Uncle Ed for $1,200 a month, which includes utilities. He anticipates being able to sell his boards for $500 each. The raw materials (resin, foam, etc.) will cost an average of $150 for each board, and he plans to spend $50 per board to advertise them to local surfers. Assuming these are all the costs and revenues, what will be Surfer Tom's monthly break-even point in units? Does this seem like a reasonable amount for him to produce and sell every month? Please show your calculations.