AMA PCM Exam - Topic 1 Question 134 Discussion

Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at $120 each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,200 for rent and insurance, $300 for heat and electricity, $600 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner. What is the break-even point for Forever Quilting?