Question
Eggstravagant Organics is a regional distributor of organic local eggs. Serving local businesses, Eggstravagant Organics (EO) has an agreement, EO can buy up to 1,000
Eggstravagant Organics is a regional distributor of organic local eggs. Serving local businesses, Eggstravagant Organics (EO) has an agreement, EO can buy up to 1,000 cartons of eggs per day at $3 per carton. Additional cartons may be purchased at $4 at per carton. Eggstravagant Organics uses environmentally friendly small vehicles to deliver the eggs. Each vehicle can deliver 50 cartons at a cost of $50 per route. The current sales of the company are 1,000 cartons per day at a wholesale price of $6 per carton.
Calculate the break-even sales change for Eggstravagant Organics under the follwoing circumstances:
1) The wholesale price of a carton of eggs increases to $6.60
2) The wholesale price of a carton of eggs decreases to $5.50
3) The wholesale price of a carton of eggs decreases to $5.50 and the current level of sales is 800 cartons (rather than 1,000)
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