Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter CS, Problem 6CBE
To determine
To explain: The impact on subscription, revenue and profit.
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Question 7 (Breakeven Analysis)
You decided to sell Only coffee using Nespresso machine during Ramadan
The Nespresso Machine Cost is 3,000 SAR
Every cup of coffee required one brown sugar that cost 0.5 SAR, one disposable cup costs 1.5 SAR, and one coffee capsule costs 3 SAR
If you sell one coffee for 10 SAR
Option 1
Option 2
No Employee
Sales quantity = 1500 per month
Selling Price 10 SAR per coffee
One more Employee and his salary is 4000
Expected sales quantity = 2500 per month
Selling Price 10 SAR per coffee
What is the breakeven quantity?
What is the breakeven quantity?
What is the profit?
What is the profit?
Which option is better?
Don't give answer in image format
Economics
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Do not provide Excel Screet shot rather use tool table
Answer completely.
Chapter CS Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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