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Answer:
d. May
Step-by-step explanation:
To find when Kesia records got to break even, we first need to find how much they made total per month.
Now we need to first find how much they made on January.
The production cost of January will be:
Production cost = 5486 x 1.13
Production cost = $6199.18
Now that we know the production cost, we need to solve first for the total revenue.
Total Sales Revenue = 5486 x 9.75
Total Sales Revenue = $53488.50
Now that we have both the revenue and the production cost, we need can find how much profit by:
Profit = Total Sales Revenue - Production cost - Overhead
Profit = 53488.50 - 6199.18 - 27714
Profit = $19575.32
So they made a profit of $19575.32 by the end of January.
Now we move on to the other months.
Production cost = 8191 x 1.13
Production cost = $9255.83
Total Sales Revenue = 8191 x 9.75
Total Sales Revenue = $79862.25
Profit = 79862.25 - 9255.83 - 21689
Profit = $48917.42
Now that we have the profit for 2 months, we simply add them together.
Current Value = 19575.32 + 48917.42
Current Value = 68492.74
By doing the same process with the rest of the months, we get:
Refer to Image.
We can see in the image that by May they reach a total profit of $149897.77.
Since Kesia records paid $148950, the company got to break even at the month of May.
