Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PERCENT CHANGE IN QUANTITY TO BREAK EVEN. Kiran's Kandles sells a rose- scented candle. Kiran's has been selling 27,000 of these rose-scented candles per year,
PERCENT CHANGE IN QUANTITY TO BREAK EVEN. Kiran's Kandles sells a rose- scented candle. Kiran's has been selling 27,000 of these rose-scented candles per year, at a selling price of $27.34. Kiran's has been making these candles at a variable cost of $15.02 each, but good rose-growing conditions mean that variable cost is about to go down by $3.01 per unit. In response, Kiran's Kandles is planning to reduce the rose-scented candle's selling price by $4.79 per unit. What is the PERCENT CHANGE IN QUANTITY such that Kiran's will JUST BREAK EVEN on these changes in price and variable cost? Be sure to use the correct sign. (Report your answer as a percent. Report 25.5%, for example, as "25.5." Rounding: tenth of a percent.)
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