What is the breakeven point for this new process?

1) Patricia Zell a dollmaker from Olney Maryland is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25000. Labor and material costs are approximately $10 per doll. If the dolls can be sold for $50 each what volume of demand is necessary for the Tiny Trisha doll to break even?2) Although it will fulfill her lifelong dream Patricia is not confident that demand for her Tiny Trisha doll will exceed the breakeven point computed in Problem 6-5. If she chooses a less appealing site and does more of the work by hand her initial investment cost can be reduced to $5000 but her per-unit cost of manufacture will rise to $15 per doll.What is the breakeven point for this new process?Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now