What other factors might Mrs Jolly consider before setting up the business? Mrs Jolly always made the
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What other factors might Mrs Jolly consider before setting up the business?
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Mrs Jolly always made the wedding cake for family and friends whenever the need arose. Feedback was always very positive and Mrs Jolly began to consider whether or not it would be worth her while setting up in business. To determine the viability of the project, she has gathered the following budgeted annual information. Selling price per cake Advertising and publicity Ingredients per cake £100 £2,500 £40 Annual salary for an assistant £5,000 Decorations per cake £5 In addition, she would need to invest £10,000 for a dedicated kitchen area in her house for the new venture. This would last her five years. Mrs Jolly always made the wedding cake for family and friends whenever the need arose. Feedback was always very positive and Mrs Jolly began to consider whether or not it would be worth her while setting up in business. To determine the viability of the project, she has gathered the following budgeted annual information. Selling price per cake Advertising and publicity Ingredients per cake £100 £2,500 £40 Annual salary for an assistant £5,000 Decorations per cake £5 In addition, she would need to invest £10,000 for a dedicated kitchen area in her house for the new venture. This would last her five years.
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Answer rating: 100% (QA)
First thing that Mrs Jolly needs to consider is that how many cakes does she need to sell in order to break even Break even is that level of activity ... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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