23 Jul HOW MUCH WOULD SHE NEED TO RAISE HER PRICE IN ORDER TO REACH THAT AMOUNT OF PROFIT IN TWO YEARS?
Madeline took out a loan to fund the first $1500 of operating costs. She used that money to purchase Show more Madeline took out a loan to fund the first $1500 of operating costs. She used that money to purchase materials the costs of which are broken down as follows: 1. Wood $3 2. Tulle $1.50 3. Ribbon $1.25 Additionally she uses on average 4 jars of paint and 2 bottles of glue for every 10 products. Each jar of paint costs $6 and each bottle of glue costs $2. Madeline has agreed to pay back the interest-free loan at a rate of $75 per month; this is her only Fixed Cost. It takes Madeline about 45 minutes to make each item. Madeline currently sells her product at a price of $19/each. She sells 20 products per month. ( I calculated that The cost is $171 for her to make 20 units. She yields a profit(revenue- costs) of $209/ per 20 units because 19$x20 units=380. 380-171= $209) I have to answer: What is the variable cost per unit Let x = # of units of the product manufactured and sold Let R(x) = Revenue Let V(x) = Variable Cost Let F(x) = Fixed Cost Let C(x) = Total Cost Let P(x) = Profit 1.What is the estimated Variable Cost per product (materials only) before shipping? List the items and their respective per-unit costs and then provide the formula to calculate V(x). 2. What is the estimated total cost per month? Provide as a formula to calculate C(x). 3. If Maddie sells each product for $19 what is her Break-Even level of production? Write a brief statement summarizing your findings. (When solving for x round to the closest whole number of units.) 4. In what month will Maddie reach her Break-Even level of production? 5. As demand increases throughout the first year Madeline decides she cant make more than 50 products per month to keep up with her studies and extracurricular activities. She has her heart set on a car that costs $16000 and she wants to buy it at the end of her second year of business. How much would she need to raise her price in order to reach that amount of profit in two years? a. Are there any other market forces she should consider as she contemplates raising her price? Please elaborate on any potential consequences she may face. b. Would you recommend that Madeline raise her price in order to make enough profit to purchase the car she wants? Why or why not? If you dont think she should raise her price what would you recommend as an alternative method of generating the capital Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.