Problem
I. What is Jim's break-even volume of baked goods given the following information:
i. Rent: $1,000 per month
ii. Equipment Payments: $80 per month
iii. Utilities: $120 per month
iv. Insurance and Licenses: $800 per year
v. Jim's Salary: $25,000 per yearAverage Selling Price of Baking: $1.50, Variable Cost per Unit: 50 cent
II. Jim's Bakery is a one-man operation. Do you think he can become profitable with your help?