Business, 28.01.2021 21:40, jameslinimk
You operate a lemonade stand. The wholesale cost of lemonade is $0.50 per unit. The cost of rent for the stand is $20 per day. You need to choose your pricing and advertising strategy. You are considering three alternatives: A: If you set the selling price to $1.50 per unit and spend $0 on advertising, you will sell 160 units per day. B: If you reduce the selling price to $1.20 per unit and spend $0 on advertising, you will sell 240 units per day. C: If you set the selling price to $1.50 per unit and spend $30 per day on advertising, you will sell 240 units per day. a) Compute revenue, costs, and profit per day for each alternative. A B C Revenue Costs: Lemonade (wholesale) Rent Advertising Profit b) Which alternative should you choose
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You operate a lemonade stand. The wholesale cost of lemonade is $0.50 per unit. The cost of rent for...
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