What price should you charge for a gallon of ice cream

Assignment Help Business Economics

Reference no: EM131000066

Assume that the cost of producing ice cream is $1.20 per gallon. You estimate that you can sell 1,000 gallons per month.

If you want to earn revenue of $2,500 per month, what price should you charge for a gallon of ice cream?

If you earn revenue of $2,500 per month, what will your monthly profit be?

Assume that your estimates were too aggressive and that you will only be able to sell 800 gallons per month at a market price of $2 per gallon. What will be your monthly profit (or loss)?

Reference no: EM131000066

Questions Cloud

Inventory transactions at both cost and retail : Estimate the 2011 and 2012 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.

Find the energy delivered by each battery : Determine the current in each branch of the circuit. Find the energy delivered by each battery. Find the energy delivered to each resistor. Identify the type of energy storage transformation that occurs in the operation of the circuit.

Vulnerabilities in our food and agriculture infrastructures : Terrorist attacks have been focused on commercial aviation since the 1970s. A number of significant international conventions related to terrorism have been developed over the last sixty years

Design and security of corporate network infrastructures : You are a well-known expert in the design and security of corporate network infrastructures. As such, Z Corporation, Inc. (ZCorp) has contacted you and is requesting a proposal for a network infrastructure integration design. The benefits of imple..

What price should you charge for a gallon of ice cream : Assume that the cost of producing ice cream is $1.20 per gallon. You estimate that you can sell 1,000 gallons per month. If you want to earn revenue of $2,500 per month, what price should you charge for a gallon of ice cream? Assume that your estimat..

Define the enterprise resources into tangible and intangible : Define the enterprise resources into tangible and intangible and include under the latter they include certain resources such as brand names and technical patents.

Amount of cash received from the sale : If $3,000,000 of 10% bonds are issued at 95, the amount of cash received from the sale is

Sell in order to earn positive accounting profits : Tara is considering leaving her current job, which pays $85,000 per year, to start a new company that manufactures a line of special pens for personal digital assistants. Suppose that Tara is not completely confident in her sales estimates. Assuming ..

Written and oral communication-reflective thinking : Develop a research proposal that implements each step of the marketing research process. Discuss how the research results will help the business or organization. (AACSB: Written and Oral Communication; Reflective Thinking)

User Account

All Pages