Patricia Zell, a dollmaker from Olney, Maryland, is inter-ested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investmentrequired for plant and equipment is estimated at $25,000.Labor and material costs are approximately $10 per doll. Ifthe dolls can be sold for $50 each, what volume of demandis necessary for the Tiny Trisha doll to break even?
Patricia Zell, a dollmaker from Olney, Maryland, is inter-ested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investmentrequired for plant and equipment is estimated at $25,000.Labor and material costs are approximately $10 per doll. Ifthe dolls can be sold for $50 each, what volume of demandis necessary for the Tiny Trisha doll to break even?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Patricia Zell, a dollmaker from Olney, Maryland, is inter-
ested in the mass marketing and production of a ceramic doll
of her own design called Tiny Trisha. The initial investment
required for plant and equipment is estimated at $25,000.
Labor and material costs are approximately $10 per doll. If
the dolls can be sold for $50 each, what volume of demand
is necessary for the Tiny Trisha doll to break even?
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