For this discussion, come up with a business idea focusing on a single product. Briefly describe your business scenario.
For this discussion, come up with a business idea focusing on a single product. Briefly describe your business scenario. In your business, discuss the following (make sure the numbers are realistic based on a real-life scenario (i.e. use 4.99 instead of 5) and not overly simple (i.e. all of the numbers end in ‘0’ or ‘5’, etc.) or overly complicated).
1. What is fixed cost (make sure to outline what’s included in the fixed cost)? What is the marginal cost? What is Cost function C(x)?
For example, the fixed cost for the business is about $5,287 per month total (including rent, utilities, worker salaries, and shipping costs), and the marginal cost is approximately $6.85 per unit.
2. What is the selling price for your product (for example, $14.99 per item)? What is Revenue function R(x)?
3. What is the break-even point? What is Profit function P(x)? Make sure to show the steps how to find both. Do you think your business can be profitable in a given month?
