Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Daisy Childs has decided to start an e-tail business which will sell doggie treat dispensers. Daisy will sell each unit for $60, and will purchase

Daisy Childs has decided to start an e-tail business which will sell doggie treat dispensers. Daisy will sell each unit for $60, and will purchase the units from a foreign supplier for $20 each. Import duties are 10% the amount paid to the foreign supplier and freight-in is expected to be $4 per unit. Packaging and shipping the units to customers will cost another $6 per unit. Daisy has contracted out the web page design and maintenance for $2,520 per month. Daisy expects no other costs as long as she doesnt sell more than 1,000 units per month.

Daisys monthly sales revenue needed for her business to breakeven is $?. (enter commas where appropriate)

The number of units must Daisy sell to make a target profit of $20,000 is ?.

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

Recommended Textbook for

College Accounting Chapters 1- 15

Authors: James A Heintz, Robert W Parry

23rd Edition

1337794767, 9781337794763

More Books

Students also viewed these Accounting questions