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March 27, 2017

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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.

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