1. A retailer desires a 40% margin on a product. What markup from cost would a 40% margin if the cost of the product is $3.34. What is the price at shelf?
2. Brovalanche Ventures figures out how to sell their snowboards and run their business at a profit. As a result of growth, they need to double their fixed costs. What does this do to their break-even quantity (no other numbers change)?
A. it halves their break-even quantity
B. it has no effect because they were profitable before the needed to increase fixed costs
C. it doubles their break-even quantity
D. it increases the break-even quantity by a factor the natural log of 2.