Calculate the break-even point

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Reference no: EM133501873

Assignment:

After conferring with her sister (a business major in college), Mallory considered four marketing strategies in addition to her original plan. Calculate the break-even point (in cups) for each (assume for the moment that each is an independent alternative):

• Mallory's family lives on a cul-de- sac and her parents said she has to sell from her driveway. This means her street gets limited traffic. She thinks creating two signs and placing them at the entrance of the cul-de-sac, which would make more people aware of her stand. The materials to make the signs cost $5. With this change what is her BEP?

• Mallory saw some fancier plastic cups that she thought might make her lemonade look nicer. The larger cups would go for $.15 each and because they were a little larger - costs for lemons and sugar would rise $.05 per cup. With this change what is her BEP?

• Her sister said she was charging too much for a cup of lemonade. So Mallory considered charging $.50 per cup instead of the planned $.75. With this change what is her BEP?

• She also wanted to consider a higher price of $1 per cup instead of the planned $.75. With this change what is her BEP?

Reference no: EM133501873

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