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Assuming you are the person in-charge on pricing in a factory producing frozen hamburgers. The fixed costs are $2,000,000, variable costs are $ .75 per hamburger. You are selling your product to retailers for $1.25. You sell the hamburger in box of 24.
Problem 1: How many boxes of hamburgers do you sell to break even?
Problem 2: How much in dollars do you sell to break even?
Problem 3: How many boxes of hamburgers do you sell to break even plus a profit of $300,000?
Problem 4: Assume a retailer (local supermarket) buys your product for $ .89. His business requires all products are with a 35 percent markup on cost. Calculate his selling price?
Problem 5: Following on Problem 4, how much must you sell in dollars to break even?
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