What Price Should Violet Sell Each Bonsai Plant for to Make a $5,000 Profit?
What factors should Violet consider when determining the selling price for each Bonsai plant in order to achieve a $5,000 profit?
Violet should consider the costs involved in producing and displaying the Bonsai plants, the desired profit margin, and the number of plants she expects to sell.
Calculating the Selling Price for Each Bonsai Plant
Total Cost of Bonsai Plants:
Violet plans to sell 600 Bonsai plants at a cost of $26.25 each, resulting in a total cost of $15,750.
Additional Costs:
Violet estimates that the lights and fixtures for displaying the Bonsai plants will cost $2,000.
Total Costs:
The total costs include the cost of the plants ($15,750) and the additional costs ($2,000), totaling $17,750.
Total Revenue Needed:
With a desired profit of $5,000, the total revenue needed is $22,750 ($17,750 + $5,000).
Calculating Selling Price:
To find the selling price for each Bonsai plant, divide the total revenue needed by the number of plants to be sold: $22,750 / 600 plants = $37.92.
Therefore, Violet should sell each Bonsai plant for approximately $37.92 to achieve a $5,000 profit.