Carlos is setting up a Production Control System (PCS) for W…
Carlos is setting up a Production Control System (PCS) for Widgets.com. The company has fixed expenses of $12,000 to set up the system. In addition, the PCS costs $3,000 / month to operate. Each unit that Widgets.com produces sells for $10, and each unit costs $4 in materials to produce. If a manufacturing run is three months, how many total units does Widgets.com need to produce to break even?