Solution-What is the minimum salesprice leslie should

What is the minimum salesprice leslie should consider

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Case Study: Karol G is considering the wholesaling of a leather handbag from China. She must travel to China to check on quality and transportation. The trip will cost $3,000. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which will ship a container that can hold up to 1,000 handbags at a cost of $1,000. The freight company will charge $1,000 even if less than 1,000 handbags are shipped. Karol G will try to sell the handbags to retailers for $20. Assume there are no other costs and benefits.

Question: Suppose a large discount store asks to buy an additional 1,000 handbags beyondnormal sales. Which shipping method should be used and what is the minimum salesprice Leslie should consider in selling those 1,000 handbags?

Reference no: EM133520884

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What is the minimum salesprice leslie should consider

Reference no: EM133520884

Reference no: EM133520884

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