Problem
A newly incorporated company intends to produce plastic containers. A machine with a production rate of 200 containers per hour has an initial cost of $50,000. Other costs associated with the production are
Raw material for one container-$5.
Machine operator-$10 per hour for 8 hours a day production
Hourly electricity used by the machine-$1/hour
Building to house the offices and production facility-$150,000
Personnel salary, advertisement, utility, and other costs
If the containers can be sold at a price of $10 per unit, how many containers should the company sell to break even? Do not consider depreciation and tax.