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Frances has a home-based Avon She purchases makeup from Avon for an average price of $12and sells it to her customers on average for $20.
- Frances has a home-based Avon She purchases makeup from Avon for an average price of $12and sells it to her customers on average for $20. She assigns $100 of her monthly computer leasing costs to this product line and spends $260 per month advertising this product line. In hosting Avon parties, she estimates her labor cost at $2 per unit sold.
a. What is her net income or loss if 100 units are sold?
b. What is her net income or loss if 35 units are sold?
c. What is the break-even point in both units and dollars?
d. What is the new unit break-even point if Frances increases her advertising costs by 50% per month?
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