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Mingo sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $35,000. Last year they sold 1,000 sticks.
Mingo sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $35,000. Last year they sold 1,000 sticks. They are considering a 30% price decrease to move or sell more sticks. Assuming all the variable and fixed costs remain the same:
i) How many sticks do they need to sell to simply break even?
ii) What was their profit if they did sell 1,000 sticks?
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