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A startup direct to consumer eyewear brand purchases sunglasses from its supplier for an average $40/pair and resells them for an average $80/pair. They plan
A startup direct to consumer eyewear brand purchases sunglasses from its supplier for an average $40/pair and resells them for an average $80/pair. They plan to pay a marketing agency $12,000 per month to maintain an updated website, develop and place advertisements on Facebook and Instagram, and develop and manage email marketing campaigns. They will pay one junior employee $15 per hour (~$2400/month) to work full time to manage logistics and be available to take calls and emails, or chat online with customers before and after they purchase. They estimate this one employee can manage up to 800 sunglass orders per month before they need to hire someone else. Customers will buy exclusively online using credit cards, debit cards and Apple Pay. The brand will pay Shopify (their merchant services provider) an average of 5% of the sales price for each transaction for these e-commerce services. How many pair of sunglasses does the brand need to sell to break even each month
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