Business, 01.02.2021 22:40 kimjooin02

Making a decision You operate a lemonade stand. The wholesale cost of lemonade is $0.50 per unit. The cost of rent for the stand is $30 per day. You need to choose your pricing and advertising strategy. You are considering three alternatives: A: If you set the selling price to $1.50 per unit and spend $0 on advertising, you will sell 100 units per day.
B: If you reduce the selling price to $1.20 per unit and spend $0 on advertising, you will sell 150 units per day.
C: If you set the selling price to $1.50 per unit and spend $30 per day on advertising, you will sell 150 units per day.
a) Compute revenue, costs, and profit per day for each alternative. A B C Revenue 150 180 225 Costs: Lemonade (wholesale) Rent Advertising Profit
b) Which alternative should you choose

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Making a decision You operate a lemonade stand. The wholesale cost of lemonade is $0.50 per unit. Th...

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