Assignment Week 13

1. Bakery is making pies, which has a monthly fixed cost of $ 6000. Variable cost Will be $ 2.00 per pie and retail price will be $ 7.00 each. (12)

1. How many pies must be sold per month in order to break even?

2. What would be the profit (loss) be if 1,000 pies are made and sold per month?

3. How many pies must be sold to realize a profit of $ 4000 per month?

2. Assume

that you would start a business of having a hot dog truck at KPU Surrey campus (32)

1. Identify your fixed costs and variable costs (4)

2. Identify pricing tactic you would deploy? (2)

3. Decide on a selling price for your hot dog (consider you have only one size) (2)

4. what is your mark up? (2)

5. Based on your selling price, what is your contribution? (2)

6. How many hot dogs do you need to sell to make a profit per month? (Do a Break-even analysis)

   (5)

7. What should be your daily average sales quantity (assume you open 20 days per month) (2)

8. What are things you could do to lower your break-even sales quantity? (3)

9. What are some things you could do to make sure you meet your break-even point as quickly as

   possible? (3)

10. Identify some of your pull strategies? (4)

11. What type of promotions would you do to improve your sales? (3)

(Full marks will be awarded for using realistic pricing and practical approaches)

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4. Based on your promotion decided, develop your promotional material? Use any appropriate promotional media and marks awarded based on creativity (10)

5. Following assignment guidelines, reliable and sufficient research performed to support the argument. Sources cited to support statements. Clear and concise writing (5 points)

Total Points 54 (Percentage 5%)

Revision May 2020