Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50. Her best guess is that she can sell 300 cups per week at $0.5 per
cup. The variable cost of producing a cup of lemonade is
$0.2.
- What level of sales volume will enable Julie to break even? - Discuss how a change in sales volume affects profit. Try lemonade
sold ranging from 100 to 500 with an increment of 50. Discuss how a change in sales volume and variable cost jointly affect profit. Try lemonade sold ranging from 100 to 500 with an increment of 50, and variable cost ranging from $0.10 to $0.45 with
an increment of $0.05