Reference no: EM131221915
Flores owned by Livia, provides a variety of rare roses bushes to local nurseries that sell livias roses to the end consumer ( landscapers and retail customers ). Livia grows the roses from cutting that she has specifically cultuvated for their unusal characterstic ( color, sizes, heartiness, and resitance to disease). Livia roses are in great demand as evidenced by the wholesale price she chargesnurseries, $ 15 per pottted plant. Flores roses has the following cost structure ( variable costs are per potted plant) :
Fixed costs per year
Plant materials (variable cost = .50)
Plot (Variable cost = .30)
Labor $8,000 (Variable cost = .70)
Utilities 9000
Rent 7500
Other costs 250
1) How many potted roses plants must Flores roses sell each year to break even?
2) If livia wants to make profits of 10,000 before taxes per year, how many potted roses plants must be sold?
3) If livia wants to make profits of 10,000 after taxes per year, how many potted roses plants must be sold assuming a 35% percent income tax rate?
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