Question: Assume you have a part - time job ( while you are going to school ) as a photographer, taking pictures for events such as
Assume you have a parttime job while you are going to school as a photographer, taking pictures for events such as weddings, parties, and other social events. Spring is your best time of the year and you want to see if you can grow the business this year, particularly the wedding portion of your business. In the past, you have offered a wedding package that includes taking pictures of the wedding events, organizing the wedding photos into both a physical and digital album, and providing a digital copy of the wedding photos set to music. Your estimated cost incurred for a wedding package is $ and you charge customers $ for your wedding package. You normally spend $ on advertising and promotion, which in the past has averaged weddings per spring. You are considering three pricing options for this spring and need to decide what you should do: Option keep the price the same; Option drop the price by $; Option raise the price by $
Use breakeven analysis to determine the breakeven point in units needed to cover the $ in fixed costs you spend on advertising. How many weddings do you need to work to pay for the advertising if you keep your price the same, lower it by $ and raise it by $ Use the table below to help work through the different breakeven calculations. Round answers to decimal places, eg
tableCurrent Price,Lower by $Raise by $
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