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Problem 2. Your business sells two meal plans: Plan A and Plan B. Last year, you sold 75.850 units for Meal Plan A and 23,450
Problem 2. Your business sells two meal plans: Plan A and Plan B. Last year, you sold 75.850 units for Meal Plan A and 23,450 units for Meal Plan B by the end of this year. Please answer the following questions based on the information given: Plan A: Avg. Price $15.00: Variable Cost per unit: $3.50 Plan B: Avg. Price $13.50, Variable Cost per unit: $4.50 Fixed Costs/Year $350,000 labor $ 95,000 utilities $258,600 lease $ 85,750 interest $ 12,450 other fixed Since Plan A is more popular than Meal plan B, you decide to raise the menu price of Plan A to $16.5. Meanwhile, you are also testing a few new plans so there will be additional $3240 sales and marketing costs invested as a fixed cost/year. In the coming year, how many Meal Plan As and Plan Bs do you need to sell to make $85,000 annual profit? (Hint: Your sales mix will change, and so does your CMR) (10 pts)
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