Meyerson's Bakery is considering the addition of a new line of pies to its product offerings. It is expected that each p
Posted: Tue Nov 16, 2021 7:48 am
Meyerson's Bakery is considering the addition of a new line of
pies to its product offerings. It is expected that each pie will
sell for $10 and the variable costs per pie will be $4. Total fixed
operating costs are expected to be $18,000. Meyerson's faces a
marginal tax rate of 35%, will have interest expense associated
with this line of $3,000, and expects to sell about 2,500 pies in
the first year. Use the Goal Seek tool to determine the selling
price per pie that would allow Meyerson's to break even in terms of
its net income
pies to its product offerings. It is expected that each pie will
sell for $10 and the variable costs per pie will be $4. Total fixed
operating costs are expected to be $18,000. Meyerson's faces a
marginal tax rate of 35%, will have interest expense associated
with this line of $3,000, and expects to sell about 2,500 pies in
the first year. Use the Goal Seek tool to determine the selling
price per pie that would allow Meyerson's to break even in terms of
its net income