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Profit Orientation – Cost Base Pricing Variable Cost = $30 per tote Fixed Cost = $4,500...

Profit Orientation – Cost Base Pricing

Variable Cost = $30 per tote

Fixed Cost = $4,500 (annually)

Whole Market Estimate is 76,000 (see Rochester census data for number of females between the ages of 18 and 65) of which I would like to get 10%

What would the selling price of the tote be if I wanted to get a 50% target profit.

What would the Break Even volume be, i.e., how many would I have to make and sell before I began to make money.

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Answer #1

» Whole market estimate ts 46000, of which you would like to get is 4600. -: variable cost lunit = $30 Fixed cost per Unit =intermediate calculations are rounded off to two decimal places and final answer is rounded off to nearest dollar

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