Viki's Flower Shoppe sells flowers and small gifts. * The flowers cost the store $9 for each arrangement. The vase costs $6. * The florists are paid $32/hr while a florist can create 4 arrangements per hour. * Rent for the store and other overhead expenses total $6000 per month. * Based on the store location, Viki expects to sell 300 arrangements next month. * They would like to achieve a return on sales / profit margin of 20%. Pricing problems Part 1: 1. Calculate the unit cost 2. Recommend a cost-based price 3. Estimate the monthly revenue and profit Next month, Viki decided to change the price to $59.99 and managed to sell 260 flower arrangements Pricing problems Part 2: 4. Calculate Vicky's revenue and profit in the second month. 5. Calculate the price elasticity for their flower arrangements. 6 . How would the sales volume, revenue and profit change if they decided to increase the price to 64.99