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You are considering starting a cone collection business. The current selling price for pine cones is $5 per hectolitre. You believe you can collect 100
You are considering starting a cone collection business. The current selling price for pine cones is $5 per hectolitre. You believe you can collect 100 hectolitres per day. You have done a budget and the cost to go to the forest to collect the cones is $250 per day (including gas & labour). You would need to pay $6,000 per year to rent a truck, $2,000 per year for the storage building and another $22,000 per year for other fixed costs. What is your gross profit per hectolitre? How many hectolitres do you need to collect to breakeven?
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