Brown Appliances Store sells microwaves for $350 each which cost Brown $200 each. Brown pays $2,570 for the store rent. Brown pays a commission of 10% of the sales price for each microwave sold to its salesman.
Required:
What is Brown’s breakeven point in units (microwaves)?
Assume the same as above, except now Brown wants to earn a profit of $1,600. How many units (microwaves) does Brown need to sell to earn the profit of $1,600?