Royal Sweets has a long history of selling lollies and chocolates from its store in the major shopping centre in a medium sized town.Royal Sweets is considering adding premium chocolates to its range of chocolates and assumes that it can sell a dozen of these premium chocolates in an attractive box for $3.50.Its total fixed costs would be $15,000 for the new range,and its variable costs per dozen for the premium chocolates are $2.00.Royal Sweets determines that the current market for premium chocolates in its town is 20,000 dozen boxes per year and knows that it has one major competitor in the shopping centre and one smaller competitor in one of the suburban areas who both sell premium chocolates.Calculate the break-even point and advise Royal Sweets.

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The Answer of Royal Sweets has a long history of selling lollies and chocolates from its store in the major shopping centre in a medium sized town.Royal Sweets is considering adding premium chocolates to its range of chocolates and assumes that it can sell a dozen of these premium chocolates in an attractive box for $3.50.Its total fixed costs would be $15,000 for the new range,and its variable costs per dozen for the premium chocolates are $2.00.Royal Sweets determines that the current market for premium chocolates in its town is 20,000 dozen boxes per year and knows that it has one major competitor in the shopping centre and one smaller competitor in one of the suburban areas who both sell premium chocolates.Calculate the break-even point and advise Royal Sweets.

Royal Sweets Has a Long History of Selling Lollies and Chocolates