Question
Mallory started a lemonade stand. She has the following cost structure to her business: Her cups cost her $.05 each. She spent $2 on materials
Mallory started a lemonade stand. She has the following cost structure to her business:
Her cups cost her $.05 each.
She spent $2 on materials to make signs.
The lemonade mix and ice cost her $.20 per cup.
She spent $10 on materials to build a lemonade stand.
1- Mallory was charging $1.00 for each cup of lemonade. Her sister Ally told her that her price of $1 per cup of lemonade was too high and she should really be selling them for $.50 each. Mallory figured out that this cut in price would cut profit margin per cup by ____.
2- Mallory sold bottles of her lemonade to Tommy Wiseacre for $.50 each. Tommy would take the bottles and sell them to people at the neighborhood park for $1.00 each. Tommy uses a ____ markup percentage for his pricing.
3- Assuming Mallory sells cups of lemonade for $1.00 each and has the cost structure noted above, how many Mallory needs to sell _____ cups to break even?
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