Jesse, Inc., located in Mesa, Arizona, manufactures high-end baby chairs. The firm’s cost accountant,

Lisa, has been assigned by the CEO to determine how many baby chairs Jesse,
Inc., needs to make and sell in order to break even. She is given the following data:

Baby chair sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15
Variable cost per baby chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Production worker salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350

Determine how many baby chairs Jesse, Inc., needs to make and sell in order to break even.

To determine how many baby chairs Jesse, Inc. needs to make and sell in order to break even, we need to calculate the breakeven point.

The breakeven point is the point where the company's total revenue equals its total costs, resulting in neither a profit nor a loss.

To calculate the breakeven point, we can use the following formula:

Breakeven Point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Given the data provided:

Sales price per baby chair = $15
Variable cost per baby chair = $9
Production worker salary (Fixed cost) = $1,350

Now we can plug these values into the formula:

Breakeven Point = $1,350 / ($15 - $9)

Simplifying further:

Breakeven Point = $1,350 / $6

Breakeven Point = 225 baby chairs

Therefore, Jesse, Inc. needs to make and sell at least 225 baby chairs in order to break even.