Assignment: Read chapter 14 and write a two page paper using the concepts discussed in chapter 14. Please read the discussion on pricing carefully. Understanding break even analysis is critical.
The assignment is as follows:
Look in the closets and notice the types of shoes you own. What product qualities were you looking for when you chose these shoes? How important were price, style, brand name, function, fit and color?
Pricing question: If you were to open a shoe store, how many shoes would you need to sell to break even? Use the following data:
Total fixed costs (FC)=$10,000, Price of pair of shoes (P)=$40, Variable cost (VC) per pair=$20
Please show calculation.