Question: When U-Develop started it had only one service - print processing. After a short time, a second service - enlargements of photos, was offered. The

When U-Develop started it had only one service - print processing. After a short time, a second service - enlargements of photos, was offered. The prices and costs of the two are as follows: Prints Enlargements Selling Price $0.60 $1.00 Variable Cost 0.36 0.56 Contribution Margin 0.24 0.44 When these two services were offered, the monthly fixed expenses were $1,820. Assume that the manager is offering a bundle of products in the ratio of 9:1, i.e 9 prints for every 1 enlargement. How many prints does he need to sell every month ?

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Lets denote the number of prints sold per month as p and the number of enlargements sold per month as e We are given the information that the bundle is offered in a ratio of 9 prints to 1 enlargement ... View full answer

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