Question: Case 2: Heather is a big Leafs fan. She decides to open a shop selling Leafs gear. The biggest seller will be the Leaf jerseys
Case 2: Heather is a big Leafs fan. She decides to open a shop selling Leafs gear. The biggest seller will be the Leaf jerseys so Heather makes her plans based on that.
A licensed Leaf jersey will cost her $75. Store rent will cost her $10,000 a month. Since she cant be there all the time she needs to hire two staff at $3,000 per month each.
The big question is what the price of a sweater will be. If the Leafs make the playoffs and go deep, some of the sweaters will become very popular and will sell for $250 each. If the Leafs play poorly and dont make the playoffs, sweaters will sell for $200 each.
Required (SHOW ALL WORK)
a) In both a worst case and best case scenario, how many sweaters does Heather have to sell each month to make a target profit of $84,000 per year?
b) Briefly state whether this is a good business for Heather and why.
P.S please show all work
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