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The Glen Stein Shop sells steins from all parts of the world. The owner of the shop, John Glen, is thinking of expanding his operations by hiring local college students, on a commission basis, to sell steins at the local college. The steins will bear the school emblem.
Required:
Problem 1: To make the project worthwhile in terms of his own time, Mr. Glen would require a $7'200 profit for the first six months of the venture. What level of sales in units and dollars would be required to meet this target net income figure? Show all computations.
Problem 2: Assume that the venture is undertaken and an order is placed for 200 steins. What would be Mr. Glen's break-even point in units and in sales dollars? Show computations, and explain the reasoning behind your answer.
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