Shardae is starting a deluxe candy apple business. The cost of producing one candy apple is $4.50. She has total fixed costs of $5,000. She is thinking of selling her deluxe apples for $9.95 each.
a. Determine her unit break-even point at her selling price of $9.95.
b. Shardae thinks her price might be set too high and lowers her price to $8.95. Determine her new break-even point.
c. An advertising agency approaches Shardae and says people would be willing to pay the $9.95 if she ran some "upscale" local ads. They would charge her $1,000. Determine her break-even point.
d. If she wanted to maintain the same break-even units as determined in (a), what would the price have to be to pay for the advertising
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