Reference no: EM132642713
Given you are constrained to your house due to Covid-19, you have decided to try and launch your own small business.
Question a. Design a small business and document 1 key product that you are selling.Name your business and product with a brief description of its purpose. In a table (please use the one below) list a maximum of 10 costs that will be involved in selling your product and explain why they are either a variable or fixed cost and their unit value.
Question b. Estimate a reasonable selling price per unit for your product with an explanation as to how you determined your selling price.
Question c. Using your figures calculate your Breakeven point, in both units and dollars ($) showing all calculations.
Question d. State whether you require a profit of either $5,000, $15,000 or $30,000 and then calculate your new breakeven point, in both units and dollars ($) showing all calculations.
Question e. Define and calculate the 'Margin of Safety', in both units and dollars, assuming you sell 35,000 units.
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