Question
Jennifer Lawrence is considering the wholesaling of earrings from Kenya.She must travel to Kenya to check on quality and transportation.The trip will cost $3000.The cost
Jennifer Lawrence is considering the wholesaling of earrings from Kenya.She must travel to Kenya to check on quality and transportation.The trip will cost $3000.The cost of the earrings is $10 and shipping to the United States can occur through the postal system for $2 per earrings or through a freight company which will ship a container that can hold up to a 1000 earrings at a cost of $1000.The freight company will charge $1000 even if less than 1000 earrings are shipped.Jennifer will try to sell the earrings to retailers for $20.Assume there are no other costs and benefits. What is the break-even point in units if shipping is through the postal system?
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