Kurt and Sam are planning to open a small shop selling lunch boxes, which they will prepare on the premises. After experimenting for some weeks Kurt and Sam have arrived at two possible lunch box sets, which they think will be popular: Lunch Box A and Lunch Box B. As they can only prepare one lunch box on the premises, they need to decide, which one to choose. a) What is the break-even point for both options? b) What profit would the expected sales of each option achieve? c) How many boxes of each option would Kurt and Sam have to sell if they wanted to achieve a profit of £800
Kurt and Sam are planning to open a small shop selling lunch boxes, which they will prepare on the premises. After experimenting for some weeks Kurt and Sam have arrived at two possible lunch box sets, which they think will be popular: Lunch Box A and Lunch Box B. As they can only prepare one lunch box on the premises, they need to decide, which one to choose.
a) What is the break-even point for both options?
b) What profit would the expected sales of each option achieve?
c) How many boxes of each option would Kurt and Sam have to sell if they wanted to achieve a profit of £800.
d) Kurt and Sam are considering a selling price increase of 10% for both
lunch box options. How many boxes of each option would they have to
sell to achieve a target profit of £900?
e)Based on the information calculated above explain, which option
Kurt and Sam should choose: Lunch Box A or Lunch Box B. You should
also consider if the information you calculated is sufficient for making an
informed decision.
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