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Part A - You run a company that buys through import and re-sells small tractors. You know you can sell your small tractors for $1,250
Part A - You run a company that buys through import and re-sells small tractors. You know you can sell your small tractors for $1,250 each. You have a warehouse you use to store the tractors temporarily. That Warehouse cost should be considered fixed, as it costs the same whether full or empty. Assume that costs you $100,000. You have two types of per-unit marginal costs. It costs you about $300 in labor per tractor you handle, and it additionally costs you about $200 in shipping costs per tractor. Your sales team has told you that you can sell 500 tractors for sure in each sales period. You think 500 sounds high, and you don't wanttocommittoanymorethan400tractorsforyourfirstimportevent. Buildabreakeven chart for this initial information. Where does it look like the Break-Even point is, in terms of both units imported and Sales Revenue? What is your Total Revenue, Total Fixed Cost, Total Variable Cost and Profit/Loss at this set of assumptions
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