Question
Olga was planning to set up a business where she would purchase paintings for $1,100 per unit and sell them for $1,800 per unit. She
Olga was planning to set up a business where she would purchase paintings for $1,100 per unit and sell them for $1,800 per unit. She wanted to conduct a break-even analysis and identified the following costs for running her business: $4,490.00 per month for store leasing, $55 per month website hosting fee, $5,100 per month for staff salary, $2,080 per month for advertising costs, and $26 per unit for labour charges to pack the paintings.
a.How many paintings would she have to sell per month to break-even?
Round up to the next whole number
b.If she wants to make a profit of $25,000 in a month, how many paintings would she have to sell?
Round up to the next whole number
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started