Reference no: EM133093143

Question - Bobble's Jewels, Inc. (BIN is setting up an online business importing and selling faux-diamond bracelets.

The cost of each bracelet varies depending on the number purchased, although they can only be purchased in batches of 300 units.

BJI also has to pay import taxes which vary according to the quantity purchased.

BJI has already carried out some market research and identified that sales quantities are expected to vary depending on the price charged.

Consequently, the following data has been established for the first month:

Number of batches imported and sold	Average cost per unit, including import taxes	Total fixed costs per month	Expected selling price per unit
#	$	$	$
1	15.00	7,500	40.00
2	14.50	7,500	36.00
3	14.00	8,000	32.00
4	13.00	8,000	30.00
5	13.00	9,500	27.00

Required -

a) Calculate how many batches BJI should import and sell. Advise accordingly.

b) List and explain THREE benefits that a small and young online retailer, such as BJI, can expect to realize from budgeting. Hint: Your answers must address the question and refer to small and young online retailers.