Question
Dorothy OConnon has recently left her job as a florist at a grocery store chain to start her own business, Dorothys Floral Delivery. She is
Dorothy OConnon has recently left her job as a florist at a grocery store chain to start her own business, Dorothys Floral Delivery. She is trying to determine her break-even point. She plans to sells two types of flower arrangements. Based on her research, she is projecting the sales mix to be 60% basic flower arrangements and 40% deluxe flower arrangements. Basic arrangements have a variable cost per unit of $9.8 and a selling price of $21.56. Deluxe arrangements have a variable cost per unit of $16.66 and a selling price of $39.2. Her fixed costs are $12054. How many basic arrangements would she have to sell to break-even?
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