3. Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be P25,000, whereas labor, material, packaging, and shipping will be about 10 per doll. If the dolls are sold for P30 each, what sales volume is necessary for Andy to break even?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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3.
Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering
mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and
equipment will be $25,000, whereas labor, material, packaging, and shipping will be about 10
per doll. If the dolls are sold for 30 each, what sales volume is necessary for Andy to break
even?
3
Transcribed Image Text:3. Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $25,000, whereas labor, material, packaging, and shipping will be about 10 per doll. If the dolls are sold for 30 each, what sales volume is necessary for Andy to break even? 3
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