160C1 - Please don't just copy and paste something random from the internet. Run through all the bullet points, and guarantee yourself an upvote!

Entrepreneurship is in Alyssa Stuarts blood. Alyssa has been starting businesses since she was 10 years old, and she finally has the perfect business of custom-made furniture. Customers who visit Alyssas shop can choose from a number of different fabrics and 50 different styles of couch and chair designs to create their custom-made furniture. Once the customer decides on a fabric pattern and furniture design, the information is sent to China where the furniture is built and shipped to the customer via the West Coast. Alyssa is excited about her business; all of her hard work has finally paid off as she has more than 17,000 customers and 875 orders currently in the pipe. Alyssas business is booming. Her high-quality products and outstanding customer service have created an excellent reputation for her business.

In order to expand the business, Alyssa Stuart has hired you as an external financial consultant. You are expected to provide her with advice on financial management issues, business strategy, and future development.

Alyssa Stuart is thinking of starting a store that specializes in handmade Viennese style bentwood chairs. Before opening her store, Alyssa is curious about how her profit, revenue, and variable costs will change depending on the amount she charges for the chairs. Alyssa would like you to perform the work required for this analysis and has given you the data. Here are a few things to consider while you perform your analysis:

• Current competitive prices for Viennese style bentwood chairs are between $225 and $275 a chair.

• Variable costs will be either $100 or $150 a chair depending on the types of material Alyssa chooses to use.

• Fixed costs are $10,000 a month.

1. Calculate the break-even point for Alyssas shop (the quantity of chairs and total revenue) for both scenarios of pricing. In your opinion, which of the pricing strategies is preferable? Why? For your answer, make sure that your Excel table contains calculations so the Instructor can see the formula in the formula bar for the populated cells.

   1. Tell me which calculations you used, because I have to replicate them on Excel.

2. How can Alyssa boost her profits by cost cutting or increase sales? Provide at least three recommendations that you consider the most important.

Please don't just copy and paste something random from the internet. Run through ALL the bullet points, and guarantee yourself an upvote and a half!

Alyssa's chairs - Price One Alyssa's chairs - Price Two Chair Price Chair Price $ 275 Variable Cost per chair $ 225 $ 125 $ 10,000 Variable Cost per chair $ 150 $ 10,000 Fixed Cost Number of chairs to sell Total revenue Fixed Cost Number of chairs to sell Total revenue