The price can be lowered to 45 per unit what is the new


Lilies, a flower shop, has the following data for the most recent fiscal year:

Fixed Costs

$2,300/month

Variable Costs (per unit):


Packets

$ 0.75

Décor

$ 3.00

Misc

$ 2.00

Sales Price

$50.00

a.  What is Lilies' breakeven point in sales per month?

b. The owner of Lilies is planning on moving to a new location that will cut fixed costs by 30 percent. The price can be lowered to $45 per unit. What is the new breakeven point in sales (per month)?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The price can be lowered to 45 per unit what is the new
Reference No:- TGS02764916

Expected delivery within 24 Hours