$1.00 Math help
Granny has a great idea. She wants to open a factory. In her factory, she will make cat collars and dog collars. Her marketing research guys (Sal) advise her that three cat collars will be sold per dog collar sold. A cat collar costs $2 to produce and sells for $7. A dog collar costs $3 to produce and sells for $4. Fixed costs for the firm are $50,000 per year. What is the annual number of units that must be produced to reach breakeven in terms of number of cat and dog collars? What happens if the market research is wrong and you sell 3 dog collars for each cat collar instead?
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- Posted on Jan 08, 2010 at 1:18:36PM
Granny's Decision pRblem of Dog collars and cat collars.doc (130K) (Preview)