John is considering opening a location on campus to sell Lemons his rent would be $600/month and

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John is considering opening a location on campus to sell Lemons his rent would be $600/month and she expects to sell each lemon for $6. Variable costs are $0.97 and labor is $2.76.

The also has the option to share space with a friend, which would cost her only $400/month in rent.

Her friend wants $0.06 per lemon revenue sharing. What is Johns new break-even point?

For what volume of lemon does he prefer which option?

Related Book For answer-question

Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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Posted Date: May 08, 2023 04:15 AM

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John is considering opening a location on campus to sell Lemons his rent would be $600/month and

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Johns original contribution margin per lemon is 6 selling price 097 variable cost 276 labor cost 227 ... View the full answer

Operations Management

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