Bretz Baskets would like to offer a special product to its b…
Bretz Baskets would like to offer a special product to its best customers. However, the firm wants to limit its maximum potential loss on this product to the firm’s initial investment. The fixed costs are estimated at $3,600, the depreciation expense is $870, and the contribution margin per unit is $6.89. What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?