Some home business expenses), but their variable expenses are quite high (e.g. inventory, packaging, and transportation).

Hint: pages 250-251 of your textbook

Using the textbox for this assignment - provide Ludmilla and Magda with an idea of how many SKU's they will probably have to sell before they reach aBreak-Even Point.

Data to use is based on the women's forecast of sales and expenses (they had help from a SCORE volunteer):

Anticipated sales revenue in the first six months: $70,000

Anticipated variable expenses & costs of goods sold in the first six months: $42,000

Anticipated fixed costs in the first six months: $4,000

Average unit (SKU) sales price: $5.00

How many SKU's do they have to sell to reach their BEP?