Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Product Pricing: Single Product Assume that you plan to open a Pinkberry franchise at a local shopping mall. Fixed operating costs for the year are
Product Pricing: Single Product Assume that you plan to open a Pinkberry franchise at a local shopping mall. Fixed operating costs for the year are projected to be $144,500. Variable costs per serving include the cost of the ice cream and cone, $1.50, and a franchise fee payable to Pinkberry, $0.20. A market analysis prepared by Pinkberry indicates that annual sales should total 130,000 servings. Determine the price you should charge for each serving to achieve a $125,000 pretax profit for the year. Round answer to two decimal places. $ 3.77 * price per cone
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