Frances has a home-based Avon business. She purchases makeup from Avon for an average price of...

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Frances has a home-based Avon business. She purchases makeup from Avon for an average price of $12 and sells it to her customers on average for $20. She assigns $100 of her monthly computer leasing costs to this product line and spends $260 per month advertising this product line. In hosting Avon parties, she estimates her labour cost at $2 per unit sold. a. What is her net income or loss if 100 units are sold? b. What is her net income or loss if 35 units are sold? c. What is the break-even point in both units and dollars? d. What is the new unit break-even point if Frances increases her advertising costs by 50% per month? Frances has a home-based Avon business. She purchases makeup from Avon for an average price of $12 and sells it to her customers on average for $20. She assigns $100 of her monthly computer leasing costs to this product line and spends $260 per month advertising this product line. In hosting Avon parties, she estimates her labour cost at $2 per unit sold. a. What is her net income or loss if 100 units are sold? b. What is her net income or loss if 35 units are sold? c. What is the break-even point in both units and dollars? d. What is the new unit break-even point if Frances increases her advertising costs by 50% per month?

Answer rating: 100% (QA)

A What is her net income or loss if 100 units are sold If Frances sells 100 units of Avon makeup she will have a net income of 800 This is calculated by subtracting the total cost of the 100 units of ... View the full answer