Winery, Inc., is planning to bring out a higher-quality wine product than any currently available in Orange
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Winery, Inc., is planning to bring out a higher-quality wine product than any currently available in Orange County. They've decided on selling the blended, fortified wine in 750 ml bottles under the name "Chateau St. Stanislaus Moondoggie Reserve". They are aiming at introducing the product at this year's Graffiti Week celebration at a unit price of $6.99. They will be incurring the following expenses:
- Bottles cost 15 cents a piece.
- Screw caps 3 cents a piece
- The raw grape juice can be purchased in any quantity at 12 cents per liter.
- Fermentation for one week in Tupperware casks will cost 2 cents per liter.
- Packing and shipping to the event will cost 20 cents per bottle.
- All overhead and salary for the project amounts to $8750.
How many bottles do they need to sell to breakeven?
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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