Question
Scenario 13.2. Jenny is starting a flower delivery service, and she wants to make sure she sets her prices in a way that captures a
Scenario 13.2.
Jenny is starting a flower delivery service, and she wants to make sure she sets her prices in a way that captures a large enough market while also helping her to cover all of her costs. Her costs include things like rent and utilities for the warehouse where she stores her flowers and supplies, the cost of the flowers she buys from local farmers, and the wages she pays to herself and her employees.
Refer to Scenario 13.2. To figure out the best price for her service, she starts by calculating the number of units she would have to sell at different price points to cover her costs. For example, if she sells 300 units per month at $14.99/unit, she could cover her costs, which include the following:
Fixed Costs | Variable Costs up to 700 units |
$600 | $12.99 |
What is the breakeven point (rounded to the nearest dollar) if she raised the price of her product to $22.99?
- 100
- 60
- 75
- 325
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