Question
Vitamin water sells to retailers for $2.00 per liter but costs almost nothing to make. The water costs only 10 per liter. A vitamin mix
Vitamin water sells to retailers for $2.00 per liter but costs almost nothing to make. The water costs only 10 per liter. A vitamin mix can be added at a cost of 30 per liter. The plastic bottle and label cost 25 per liter bottle.
Since it is a consumable product, you have to rent a clean facility. You have found one which will cost you $6,000 in rent each month. To automate the process, you can rent mixing machines and bottling machines for $4,250 per month. A delivery van will cost $1,900 each month (including gas and driver).
You hope to make no less than $6,000 a month from this venture, but would like to make $10,000 per month.
In both a best case and worst case scenario, how many one liter bottles of vitamin water must you sell per month?
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