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The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pie, and pies would retail for $7 each.
How many pies must be sold in order to break even?
What would the profit (loss) be if 1,000 pies are made and sold in a month?
How many pies must be sold to realize a profit of $4,000?
If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?
What could this mean for the employees covered on this new "not necessarily non-profit" model?
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If her oven exactly meets this quality level, what percentage of the time would her oven be operating at a temperature outside the acceptable range?
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