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I am doing a breakeven analysis for a marketing class and I need some help with answering the questions. I have attached the questions in
I am doing a breakeven analysis for a marketing class and I need some help with answering the questions. I have attached the questions in a powerpoint. Comment if you need any additional information.
Break Even Analysis Due: Oct. 31 Breakeven Analysis UT Dallas students can take a walk to Starbucks to buy coffee UTD entrepreneurs start a delivery service on campus, considering three price level (only over 15 dollars order will delivery) A) $1 B) $2 C) $3 Assume download the app. is for free Cost: - Fixed cost: R&D cost $100 - Variable cost: round-trip gas $0.2 - Variable cost: driver per-trip $0.2 - Q1: What would be the break-even point demand (quantity) at each of the above price level? Breakeven Analysis Alternatively, we may first conduct a preliminary research to obtain an estimate of the potential demand, i.e., how many students on average would use this service? - Q2: Say 150 students, then the break-even price would be ? Breakeven Analysis Q3: For each of the following scenario, calculate total profit and unit contribution Scenario A: 100 students will take service for $3 Scenario B: 150 students will take service for $2 Scenario C: 200 students will take service for $1 Breakeven Analysis Q4: Assume the R&D of the app is not for free, there will be some investment upfront. The investment level determines how convenient the app is for students (features, platform friendly, etc.) Calculate ROI for each scenario. Scenario A: 100 students will take the service for $3, investment=$200 Scenario B: 150 students will take the service for $2, investment=$150 Scenario C: 200 students will take the service for $1, investment=$100Step by Step Solution
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