Imagine you've started a new pizza restaurant. It costs you about $6 to produce a pizza. Last week you sold 500 pizzas for $12 each. This week you raised your price and sold 300 pizzas for $16 each. What price should you be charging? (round to the nearest penny)
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Imagine you've started a new pizza restaurant. It costs you about $6 to produce a pizza.
Last week you sold 500 pizzas for $12 each.
This week you raised your price and sold 300 pizzas for $16 each.
What price should you be charging? (round to the nearest penny)
Step by step
Solved in 2 steps
- Let's say you spend $10,125 to open up a pie store. The retail price of pies is $13, and each pie costs you $3 to make. What is the break even point? (i.e., what is the number of pies you must sell to break even?).1. Your best friend, Mario, makes the most awesome pizza in town! He's decided to open a pizza shop and needs some advice. He expects his pizzas to cost about $4 to make and he plans to sell them for $10 apiece. He's going to rent a small space for cooking, which will cost him $200 per month. He also plans to spend $60 per month on advertising. Utilities for his space are expected to be $100 per month. a. How many pizzas must he sell each month to break even under these conditions? b. If he is confident that he can sell 80 pizza per month, how much must he charge for each pizza to break even? 2. a. Using the information in (1a), above, how man pizzas must he sell to make 8% net income on his sales revenue? b. Using the information in (1b), above, how much must he charge per pizza to make 8% net income on his sales revenue? 3. a. Mario isn't comfortable with the current numbers. He thinks he can reduce his costs to $3.60 per pizza. a. If he does this and keeps his sales price at $10 per…1. Your best friend, Mario, makes the most awesome pizza in town! He’s decided to open a pizza shop and needs some advice. He expects his pizzas to cost about $4 to make and he plans to sell them for $10 apiece. He’s going to rent a small space for cooking, which will cost him $200 per month. He also plans to spend $60 per month on advertising. Utilities for his space are expected to be $100 per month. a. How many pizzas must he sell each month to break even under these conditions? b. If he is confident that he can sell 80 pizza per month, how much must he charge for each pizza to break even? 2. a. Using the information in (1a), above, how many pizzas must he sell to make 8% net income on his sales revenue? b. Using the information in (1b), above, how much must he charge per pizza to make 8% net income on his sales revenue? 3. a. Mario isn’t comfortable with the current numbers. He thinks he can reduce his costs to $3.60 per pizza. a. If he…
- A local pizza shop owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The pizza shop's current revenue from sales is equal to $____. The economic consultant estimates that the price elasticity of demand is equal to -0.25, and suggests that the shop owner should increase the price of a slice of pizza by $0.50; that is, the consultant recommends increasing the price of pizza by ____%. The consultant claims that doing so would (a. Increase b. Decrease or C.have no effect on)_____ the number of slices sold by ____% or ____ slices. As a result, the economist predicts that the new revenue would be ____ Thus as a result of the increase in the price there is ____ in revenue. This is due to the fact that the pizza shop owner was operating on the ____ portion of the demand curve. (fill in the blanks)Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay 29.95 for each 3 Pack and sell them for 59.95. What is hyour Cost of Goods Sold Perrcentage for htis item? Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. Your cost on each 3 pack is 29.95 and you sell them for 59.95. If your operating expenses for the year total 144,080, what are your net income and net profit margin percentage?You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 46% markup on cost and know most people will not pay more than $25 for it, what is the most you can pay for the pitcher? Note: Round your answer to the nearest cent. Maximum pay I
- Suppose you want to save money to buy a new car. Based on your monthly budget, you can afford up to $275 per month. You can either put this in a savings account to save the money or you can use it for a monthly car payment. In any case, you start hitting the car lots to start shopping.(a) You first go to a used car lot. You find a used Corolla for $6000. The dealer offers you a loan at 5% add-on interest over 3 years. Do the calculation and decide whether this fits into your budget.(b) You also check out some new cars. You find a new Corolla for $19,500. The dealer offers you a loan at a rate of 4.5% interest, compounded monthly, over 5 years. Do the calculations and decide if itfits into your budget.(c) You start thinking...maybe I should save up a down payment for a car before buying it outright. So you decide to save your $275 per month for 2 years by putting it into a savings account that earns 1.5% interest, compounded monthly. Use this to figure out how large of a down payment…Solve each of the following questions using both pricing formulas and Excel. 5. You are managing a small company and need to buy some equipment for your product line. Kangaroo Manufacturing is offering free credit on a $20,000 piece of equipment. You pay down $2,000 and then $600 a month for the next 30 months. Turtle Machines does not offer free credit but will give you $2,000 off the list price. If the rate of interest is 10% (APR) a year, which company is offering a better deal?The first customer bought $3.00 worth of oranges. She bought them in a bag, so she didn't know that the price came out to $0.40 per pound. The next customer also bought a $3.00 bag of oranges, but he paid $0.50 per pound for his oranges. Of the oranges sold so far, what has been the average price per pound?
- You are shopping for a car and read the following advertisement in the newspaper: "Own a new Spitfire! No money down. Four annual payments of just $12,000." You have shopped around and know that you can buy a Spitfire for cash for $38,400. What is the interest rate the dealer is advertising (what is the rate that equates the PV of the payments to today's cash price of the car)? Assume that you must make the annual payments at the end of each year.You are shopping for a car and read the following advertisement in the newspaper: "Own a new Spitfire! No money down. Four annual payments of just $18,000." You have shopped around and know that you can buy a Spitfire for cash for $64,800. What is the interest rate the dealer is advertising (what is the rate that equates the PV of the payments to today's cash price of the car)? Assume that you must make the annual payments at the end of each year. C The rate that equates the PV of the payments to today's cash price of the car is %. (Enter your response as a percent rounded to two decimal places.)Help me please