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Collier's Hat Inc. has just opened and needs to calculate the desired price to optimize sales efforts. He has spent the following money to open the store and purchase inventory.
Variable Costs per Unit = $6 Fixed Costs for the year - $30,000 Units purchased to open the store - 10,000 Desired Markup - 55%
Question 1: How many units does Collier's Hat Inc. need to sell to just breakeven? If he Keystoned the unit price (cost) how many units would he need to sell to break even? Based on the numbers given, what price would he need to charge if he just wanted a 20% return on the initial investment (initial investment=$100,000) to open the shop?
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