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The Thompson's are considering hiring a salesperson to call on corporate clients to further grow the business. Based on the Thompson's experience to date a corporate client will spend $250/month on average where costs for ingredients, labour, packaging etc. total $100. They are planning to pay a salesperson $3,000/month plus 10% commission on sales. How many new customers will the salesperson need to bring on before Chelsea breaks even?
The Thompsons want to develop a line of pre-packaged specialty chocolates to sell in boutique retailers in the surrounding area. They have determined that a retail price of $24.99 is optimal for the kind of retailers they have in mind. Such retailers typically apply a mark-up of 120% on their costs for this type of product. What wholesale price should Chelsea charge the retailers?
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