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Acme Pie Company Ltd. is a new pie manufacturer who has an unbelievably awesome pie recipe. They have provided you with the following estimates for

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Acme Pie Company Ltd. is a new pie manufacturer who has an unbelievably awesome pie recipe. They have provided you with the following estimates for the month of March 2010. Acme has been approached by Calhoms, a new trendy coffee bar in town, to buy all of its pies. If the offer was accepted, Acme could eliminate its advertising costs and reduce its packaging costs by 60%. REQUIRED: If Acme does NOT accept Calhorns offer, it will sell its pies to the public at dollar 7.95/pie. How many pies must Acme sell to the public to break-even? Assuming that Calhoms offers to pay dollar 6.45/pie, how many pies must Acme sell to Calhoms in order to break-even for the month? Assuming that Calhoms offers to buy 3,500 pies, i) What is the lowest price per pie that Acme may accept in order to at least break-even? What price must be charged to make a dollar 2,500 profit if Calhoms buys 3,500 pies? At what volume of pies would Acme be indifferent between selling to the public at dollar 7.95/pie and selling to Calhorns at dollar 6.45/pie? Acme Pie Company Ltd. is a new pie manufacturer who has an unbelievably awesome pie recipe. They have provided you with the following estimates for the month of March 2010. Acme has been approached by Calhoms, a new trendy coffee bar in town, to buy all of its pies. If the offer was accepted, Acme could eliminate its advertising costs and reduce its packaging costs by 60%. REQUIRED: If Acme does NOT accept Calhorns offer, it will sell its pies to the public at dollar 7.95/pie. How many pies must Acme sell to the public to break-even? Assuming that Calhoms offers to pay dollar 6.45/pie, how many pies must Acme sell to Calhoms in order to break-even for the month? Assuming that Calhoms offers to buy 3,500 pies, i) What is the lowest price per pie that Acme may accept in order to at least break-even? What price must be charged to make a dollar 2,500 profit if Calhoms buys 3,500 pies? At what volume of pies would Acme be indifferent between selling to the public at dollar 7.95/pie and selling to Calhorns at dollar 6.45/pie

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