You wish to open up a new printing business in the Hamilton area. Your target market will be other new businesses that require business cards, posters, and flyers. You hope to serve new entrepreneurs by offering free design clinics. Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and heat will be approximately $35 000 per year. Selling Price: The average selling price for business cards is $20. Variable Cost: $16.50 Show formulas and answers. la. Calculate the gross profit.) Gross Profit= Selling Price-Variable Costs b. How many sets of business cards will have to be sold to break even? Fixed Costs (Selling Price-Variable Costs) Break-Even=

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter15: Retailing, Direct Marketing, And Wholesaling
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You wish to open up a new printing business in the Hamilton area. Your target
market will be other new businesses that require business cards, posters, and
flyers. You hope to serve new entrepreneurs by offering free design clinics.
Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and
heat will be approximately $35 000 per year.
Selling Price: The average selling price for business cards is $20.
Variable Cost: $16.50
Show formulas and answers.
la. Calculate the gross profit.
Gross Profit= Selling Price-Variable Costs
b. How many sets of business cards will have to be sold to break even?
Fixed Costs
(Selling Price-Variable Costs)
Break-Even=
Transcribed Image Text:You wish to open up a new printing business in the Hamilton area. Your target market will be other new businesses that require business cards, posters, and flyers. You hope to serve new entrepreneurs by offering free design clinics. Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and heat will be approximately $35 000 per year. Selling Price: The average selling price for business cards is $20. Variable Cost: $16.50 Show formulas and answers. la. Calculate the gross profit. Gross Profit= Selling Price-Variable Costs b. How many sets of business cards will have to be sold to break even? Fixed Costs (Selling Price-Variable Costs) Break-Even=
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