Question
Lilies, a flower shop, has the following data for the most recent fiscal year: Fixed Costs $2,300/month Variable Costs (per unit): Packets $ 0.75 Dcor
Lilies, a flower shop, has the following data for the most recent fiscal year:
| Fixed Costs | $2,300/month |
| Variable Costs (per unit): |
|
| Packets | $ 0.75 |
| Dcor | $ 3.00 |
| Misc | $ 2.00 |
| Sales Price | $50.00 |
a. What is Lilies breakeven point in sales per month?
b. The owner of Lilies is planning on moving to a new location that will cut fixed costs by 30 percent. The price can be lowered to $45 per unit. What is the new breakeven point in sales (per month)?
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Basic Finance An Introduction To Financial Institutions Investments And Management
Authors: Herbert B. Mayo, Michael J Lavelle
13th Edition
0357714741, 978-0357714744
