Question
Mary OConnon has recently left her job as a florist at a grocery store chain to start her own business, Marys Floral Delivery. She is
Mary OConnon has recently left her job as a florist at a grocery store chain to start her own business, Marys Floral Delivery. She is trying to determine her break-even point. She plans to sells two types of flower arrangements. Based on her research, she is projecting the sales mix to be 60% basic flower arrangements and 40% deluxe flower arrangements. Basic arrangements have a variable cost per unit of $8.0 and a selling price of $17.60. Deluxe arrangements have a variable cost per unit of $13.60 and a selling price of $32.0. Her fixed costs are $10086. How many basic arrangements would she have to sell to break-even?
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