Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charlie is planning to start a business selling kitten mittens. He figured that the fixed costs would be: Cats $100 Knitting Machine $5,000 Warehouse $10,000

Charlie is planning to start a business selling kitten mittens. He figured that the fixed costs would be:

Cats $100
Knitting Machine $5,000
Warehouse $10,000
Truck $2,000

He also knows that variable cost (per unit) is:

Yarn $2
Labor $1

He wants to sell a pair (unit) of kitten mittens for $15.

1.) Charlie is pretty sure that the demand function is as following: = 80,000 - 2 .According to the demand function, is there enough demand for them to break even if they sell the kitten mittens for $15 a pair (unit)? In other words, how many consumers are willing to pay $15 or more for a pair of kitten mittens?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago