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Assume That Royal Sweets Will Only Consider Adding Premium Chocolates

Question 57

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Assume that Royal Sweets will only consider adding premium chocolates to their product line if they can be assured of profit of at least $5,000.The premium chocolates would sell for $3.50 per dozen,fixed costs are $15,000 and variable costs are $2.00 per dozen.The total market in the town is assumed to be 20,000 dozen and there are two competitors currently selling premium chocolates - one of which sells 15,000.Advise Royal Sweets.

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= 13,333.34 dozen To break even and achi...

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