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Computing a Break Even for New Skis

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Ski-YA! Is Colorado-based company that sells high-performance ski equipment. When it comes to the serious business of sliding downhill, the Ski-YA! Dudes of Colorado don't trouble themselves with petty categories: to them, all alpine snow equipment is summed up in one word: Awesome!

This season's offerings at Ski-YA! are no exceptions. Skis continue to grow wider for better flotation beyond the groomers, and the side cuts, the stick's hourglass shape designed to help a skier turn, now reflect the needs of terrain skiers. Even bindings have been rejiggered: forget the drill and screwdriver; the latest fittings snap or slide into place, extending ski life and improving energy transfer.

The Ski-YA! company wants to begin selling a new pair of skis, labeled the Downhill Demons, in the upcoming ski season. It wants to know how many skis it will have to sell in order to break even on its investment in materials and equipment. The chief financial officer has provided the following information:

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