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Roman and Clive have a plan to manufacture barbeque grills. They are writing their business plan for Roman & Clive Grills in order to get investors and have put together the following costs:
a. What are RC Grills fixed costs?
b. What are RC Grills total variable costs per unit?
c. Comparable grills are priced at $300. If RC Grills matches that price and hopes to breakeven their first year, how many do they need to make and sell? (Breakeven point is where Fixed costs + variable costs = revenue, meaning the point where revenue covers exactly both fixed and variable costs with no profit.)
d. Assuming their workers work a typical 40 hours work week and are allowed three weeks off for vacation and holidays, how many assemblers must they hire?
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