Ask Question
7 April, 00:25

A local pet store, Roscoe's Rascals, which has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $10,000 to convert some storage space into a retail area for the food. Roscoe's Rascals will purchase the specialty food for $15 and sell it for $30. Marketing research indicates that the store will sell 900 bags. Should Roscoe's Rascals add pet food to its products?

+4
Answers (1)
  1. 7 April, 01:45
    0
    yes because the break even quantitiy is less than the predicted sales.

    Explanation:

    Break even quantity = 10,000 / (30 - 15)

    = 667

    Predicted sales = 900

    So break even quantity is less than predicted sales.

    Therefore, yes because the break even quantitiy is less than the predicted sales.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A local pet store, Roscoe's Rascals, which has concentrated on selling puppies, is considering adding a line of pet food. A contractor ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers