Wayfair is one of the world's largest online destinations for the home. Among many other products,...

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Wayfair is one of the world's largest online destinations for the home. Among many other products, Wayfair is selling a coffee machine for $50. The purchase price that Wayfair has to pay to the manufacturer Hamilton Beach is $13. Fixed costs for the website care and delivery service are $60 000. At this price, Wayfair is currently selling 2 500 coffee machines. Please enter your result in whole numbers (i.e. no decimals) & without thousands separator. Do NOT use a currency symbol or name. a) Calculate their operating profit. Revenues= Operating profit= b) The same coffee machine is currently on offer at a competitor's website. Calculate Wayfair's break-even point if they also sell the coffee machine at a discounted price of $42. Break-even point = coffee machines Wayfair is one of the world's largest online destinations for the home. Among many other products, Wayfair is selling a coffee machine for $50. The purchase price that Wayfair has to pay to the manufacturer Hamilton Beach is $13. Fixed costs for the website care and delivery service are $60 000. At this price, Wayfair is currently selling 2 500 coffee machines. Please enter your result in whole numbers (i.e. no decimals) & without thousands separator. Do NOT use a currency symbol or name. a) Calculate their operating profit. Revenues= Operating profit= b) The same coffee machine is currently on offer at a competitor's website. Calculate Wayfair's break-even point if they also sell the coffee machine at a discounted price of $42. Break-even point = coffee machines

Answer rating: 100% (QA)

a To calculate Wayfairs operating profit we need to subtract the cost of goods sold and fixed costs ... View the full answer