Some home business expenses), but their variable expenses are quite high (e.g. inventory, packaging, and transportation).
Hint: pages 250-251 of your textbook
Using the textbox for this assignment - provide Ludmilla and Magda with an idea of how many SKU's they will probably have to sell before they reach aBreak-Even Point.
Data to use is based on the women's forecast of sales and expenses (they had help from a SCORE volunteer):
Anticipated sales revenue in the first six months: $70,000
Anticipated variable expenses & costs of goods sold in the first six months: $42,000
Anticipated fixed costs in the first six months: $4,000
Average unit (SKU) sales price: $5.00
How many SKU's do they have to sell to reach their BEP?