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Costs, Price, and Profit - Entrepreneurship Example

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Costs, Price, and Profit - Entrepreneurship Example
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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.

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  • Šmykľavka: 1
  • Startup Costs (One Time)
  • $124
  • Label printer: $100. QR code website for one year: $24. Total: $124.
  • Šmykľavka: 2
  • Per-Item Costs (Each Family Pack)
  • $3.50
  • 25 iron-on labels: $2.50. Envelope and printed instructions: $1.00. Total: $3.50.
  • Šmykľavka: 3
  • Price and Why
  • $10
  • $10 per family pack. Store-bought name labels cost $12–$20, and 31 parents pre-ordered at $10.
  • Šmykľavka: 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.