1.3 John has a lemonade stand and he sells lemonade in his neighbourhood. His business has a fixed cost of R200 per month and it costs him R1.50 to produce a glass of lemonade. John decided to sell each glass of lemonade for R3.00. Calculate the following: 1.3.1 Break-even volume per month 1.3.2 How many glasses of lemonade does John need to sell in order to make a profit? 1.3.3 The increase in profit if the monthly sales of 750 units is increased by 10%.

1.3 John has a lemonade stand and he sells lemonade in his neighbourhood. His business has a fixed cost of R200 per month and it costs him R1.50 to produce a glass of lemonade. John decided to sell each glass of lemonade for R3.00. Calculate the following: 1.3.1 Break-even volume per month 1.3.2 How many glasses of lemonade does John need to sell in order to make a profit? 1.3.3 The increase in profit if the monthly sales of 750 units is increased by 10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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