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You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated

You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell:

?Collars

oWith pricing at $20 per collar, you can expect to sell 30 collars per day.

oWith pricing at $24 per collar, you can expect to sell 25 collars per day.

oWith pricing at $28 per collar, you can expect to sell 20 collars per day

?Leashes

oWith pricing at $22 per leash, you can expect to sell 28 leashes per day.

oWith pricing at $26 per leash, you can expect to sell 23 leashes per day.

oWith pricing at $30 per leash, you can expect to sell 18 leashes per day.

?Harnesses

oWith pricing at $25 per harness, you can expect to sell 25 harnesses per day.

oWith pricing at $30 per harness, you can expect to sell 22 harnesses per day.

oWith pricing at $35 per harness, you can expect to sell 20 harnesses per day.

Additionally, you will need to compare your break-even points for the following target profits for each area of your business to determine your prices:

?Collars

oBreak-even

o$300 target profit each month

o$500 target profit each month

?Leashes

oBreak-even

o$400 target profit each month

o$600 target profit each month

?Harnesses

oBreak-even

o$500 target profit each month

o$650 target profit each month

image text in transcribed
Total Variable Costs per Leash Total Fixed Costs Harnesses Item Variable Costfltem Item Fixed Costs Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Hightensile strength nylon webbing Polyesterfnylon ribbons Buckles made of cast hardware Price tags Scissors, thread, and cording Loan Salary to self Total Variable Costs per Harness Total Fixed Costs

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