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5. Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of
5. Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service? 6. A company has fixed costs of $20,000 in order to sell a product that costs them S50 per unit. If a company sells the product for $120 per unit, a. Determine the break-even units b. Determine the units required to produce S100,000 in 7. Use the table below for the following questions Selling price per unit s 17 Fxed expenses Selling & administrative Interest expense S 130,000 $10,000 Variable expenses Cost of goods sold Selling & administrative $4 S 3 a) What is the break-even point in units? b) If the company wants to earn a profit of $42,000 instead of breaking even, what is the number of units the company must sell
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