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6) J ayme's Gift Pen Company sold fancy rellable pencils, pens and pen & pencil sets to those seeking thank you or special occasion gifts

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6) J ayme's Gift Pen Company sold fancy rellable pencils, pens and pen & pencil sets to those seeking thank you or special occasion gifts that would be both useil and memorable. The pens and pencils came in a variety of metallic colours, could be engraved with names, dates or special phrases, and were available for purchase at her in- house store in London, Ontario via in-person, phone or internet orders. Jayme's pencils were sold for $23.95 each, and her costs were $11 for each pencil. The pens cost Jayme $12.50 each and she sold them for $26.95. Jayme also sold sets containing a matching pencil and pen for $47.95. In addition, each sale also cost Jayme an average of $1.25 for engraving on each pencil and/or pen (not all were engraved, so the actual price per engraving was higher, but spread over all the sales it cost her about $1.25 per item), and $2.00 for the gift box each pencil or pen was delivered in ($3.00 for the gift set boxes). Jayme estimated that 20% of her sales came from pencils, 50% of her sales came from pens, and the remaining 30% of her sales came from the sets. Until this past year, Jayme had relied upon word-of-mouth referrals for sales, and she had done some face-to-face marketing by visiting corporations in the city and leaving pamphlets about her products and her business card with the various people responsible for purchasing gifts/thank you presents for the rms. Sales had been steady at about 500 sales per month, but sales had dramatically increased over the past 2 months (she was now selling about 1000 items per month) as a result of an article written about her pens by a recipient of one of them who worked at the local newspaper, The London Free Press. As a result, Jayme was wondering if it would be worth it if she spent $10,000 on a 1A - page colour print ad in the LFP prior to several important "writing implement" gift- giving dates: Father's Day (she'd run the ad in late May), Graduation (she'd run the ad in early June and again in early July), and Christmas (she'd run the ad in late November and again in the second week of December). Given her product mix, she knew she would have to calculate the weighted average unit contribution to determine the weighted average breakeven point

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