Lilies, a flower shop, has the following data for the most recent fiscal year:
Fixed Costs
|
$2,300/month
|
Variable Costs (per unit):
|
|
Packets
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$ 0.75
|
Décor
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$ 3.00
|
Misc
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$ 2.00
|
Sales Price
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$50.00
|
a. What is Lilies' breakeven point in sales per month?
b. The owner of Lilies is planning on moving to a new location that will cut fixed costs by 30 percent. The price can be lowered to $45 per unit. What is the new breakeven point in sales (per month)?