Two years ago, you started a business selling homemade candles and soap. Recently, you developed a new candle scent that you’re anxious to get on the market. You must decide whether to price the candle at $10 or $15. First, you must determine the break-even point for the $10 price. Using the information provided, perform the six-step process to calculate the break-even point.

Your Most Recent Income Statement:

Total Sales Revenues .......................... $14,500
Total Costs
Wages and salaries ............................... $4,000
Insurance ............................................... $500
Rent ....................................................... $2,000
Telephone .............................................. $600
Advertising ............................................. $300
Cost of goods ........................................ $1,000
Equipment and supplies ........................ $1,000
Utilities ................................................... $700

Total Costs ........................................... $10,100