A shoemaker has fix costs of $15,879 for rent, supplies, salaries, and alike and a cost of $28 for each pair of shoes he sells. Let’s say that, on average, each pair of shoes sells for $115.
How many pair does he need to sell to break even?
If each of his employees can make a pair of shoes in 4 days, how many employees does he need to purchase the required number of pairs of shoes to break even in a year? (Round to whole numbers and assume there are 250 days in a year.)