$7 each. a. How many pies must be sold in order to break even? b. What would the profit (loss) be if 1,000 pies are made and sold in a month? c. How many pies must be sold to realize a profit of $4,000? d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?
$7 each. a. How many pies must be sold in order to break even? b. What would the profit (loss) be if 1,000 pies are made and sold in a month? c. How many pies must be sold to realize a profit of $4,000? d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?
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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Transcribed Image Text:The owner of Old-Fashioned
Berry Pies, S.
Simon, is contemplating adding a new line of
pies, which will require leasing new equipment
for a monthly payment of $6,000. Variable costs
would be $2 per pie, and pies would retail for
$7 each. a. How many pies must be sold in
order to break even? b. What would the profit
(loss) be if 1,000 pies are made and sold in a
month? c. How many pies must be sold to
realize a profit of $4,000? d. If 2,000 can be
sold, and a profit target is $5,000, what price
should be charged per pie?
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