Adorable Face is considering a new line of lipstick products. They would like to know if it will pay off. Estimated fixed costs are $250,000, and the manufacturing, materials, shipping and packaging cost (variable cost) per lipstick is $1.00. If they sell 80,000 lipsticks, what price should they charge (maintaining the $100,000 target profit and $200,000 advertising budget)?
Adorable Face is considering a new line of lipstick products. They would like to know if it will pay off. Estimated fixed costs are $250,000, and the manufacturing, materials, shipping and packaging cost (variable cost) per lipstick is $1.00. If they sell 80,000 lipsticks, what price should they charge (maintaining the $100,000 target profit and $200,000 advertising budget)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Adorable Face is considering a new line of lipstick products. They would like to know if it will pay off. Estimated fixed costs are $250,000, and the manufacturing, materials, shipping and packaging cost (variable cost) per lipstick is $1.00.
If they sell 80,000 lipsticks, what price should they charge (maintaining the $100,000 target profit and $200,000 advertising budget)?
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