Costs, Price, and Profit - Entrepreneurship Example
Süžeeskeem Kirjeldus
TagBack T-chart example: $124 startup costs, $3.50 per-item cost, a $10 price, $6.50 profit per pack, and break-even at 20 packs.
Süžeeskeem Tekst
- Libisema: 1
- Startup Costs (One Time)
- $124
- Label printer: $100. QR code website for one year: $24. Total: $124.
- Libisema: 2
- Per-Item Costs (Each Family Pack)
- $3.50
- 25 iron-on labels: $2.50. Envelope and printed instructions: $1.00. Total: $3.50.
- Libisema: 3
- Price and Why
- $10
- $10 per family pack. Store-bought name labels cost $12–$20, and 31 parents pre-ordered at $10.
- Libisema: 4
- Profit and Break-Even
- 20 packs
-
- $10 − $3.50 = $6.50 profit per pack. $124 ÷ $6.50 = 19.1, so 20 packs to break even.