Calculate the breakeven point for a new concrete contractor


Problem

Calculate the breakeven point for a new concrete contractor. Assume a fixed monthly overhead cost of $42,150 and a contribution margin of $70 for every cubic yard of concrete sold and poured (labor included) to customers. If a concrete truck carries roughly 10 cubic yards, how many trucks per day will the concrete contractor need to order from the batch plant to break even every month? Assume a 30-day month.

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Project Management: Calculate the breakeven point for a new concrete contractor
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