Question
After taking business classes, Jake, an avid dog-lover, decided to start selling unique pet supplies at trade shows. He has two products: Product 1:Throw-It-a tennis
After taking business classes, Jake, an avid dog-lover, decided to start selling unique pet supplies at trade shows. He has two products:
Product 1:"Throw-It"-a tennis ball thrower that will sell for $15.
Product 2: "Treat-It Is"- an automatic treat dispenser that releases a treat when the dog places his paw on the pedal.The treat dispenser will sell for $40.
Costs:Jake has hired an employee to work the trade show booths.The work contract is $1,680 per month plus a commission equal to 10% of revenue.Jake will also spend $800 per month on trade-show entry fees. Jake is purchasing the products from a supplier in China.Throw-It cost $2.50 each;Treat-It-Is cost $11 each.Shipping and handling on the Throw-its will cost $6 each; Shipping and handling on the Treat-It-Is, which are heavier, will cost $9 each. The shipping and handling costs will be paid by Jake, not the customer.
Assume Jake expects to sell 600 Throw-Its and 200 Treat-It-Is during his first month of operations (June).
Jake's financial goal is to earn an operating income of $6,820 per month.He believes volume may grow at a rate of 6% a month.
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