Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle. Lori approaches Pedro about creating a special wine for her daughter's upcoming wedding. Lori will buy 50 bottles of Pedro's wine, but the order will have fixed costs for special labeling and delivery of $300. Pedro wants to go into the negotiations with Lori knowing the minimum price he can charge per bottle and not lose money on the order. What is that minimum price?
Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle. Lori approaches Pedro about creating a special wine for her daughter's upcoming wedding. Lori will buy 50 bottles of Pedro's wine, but the order will have fixed costs for special labeling and delivery of $300. Pedro wants to go into the negotiations with Lori knowing the minimum price he can charge per bottle and not lose money on the order. What is that minimum price?
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 49P
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Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle.
Lori approaches Pedro about creating a special wine for her daughter's upcoming wedding. Lori will buy 50 bottles of Pedro's wine, but the order will have fixed costs for special labeling and delivery of $300. Pedro wants to go into the negotiations with Lori knowing the minimum price he can charge per bottle and not lose money on the order. What is that minimum price?
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