Customized Cupcakes!
Hello this is a service that I am offering.
My aim is to cover my costs as soon as possible and not have a break even.
I have made an opportunity cost of forgoing using resources in the public sector and moving it into the private sector. The total revenue minus off the total cost would give me my profit- which in this case, my aim is $100.
But of course, total costs can be broken into fixed costs and variable costs. Fixed cost would be the rent on my shop which amount I won't tell. And the variable costs are costs that change according to the productivity. That is, the break even point is total cost divided by the price per unit minus the cost per unit.
Enough talk.
According to my graph, my break even point of quantity of cupcakes is currently at 25. At the point of $100 for the total revenue. Thus, my total revenue is much more than my total losses.
Right to business,
I am selling customized cupcakes. I have already made 25 and hope I do not get any surpluses. As you might have known, the higher the demand is for a product, the price would increase from (according to my table) p1 to p2 which meets and equilibrium with the supply curve. Thus, as dense rises, suppliers like me would want to produce more to of course get more revenue.
Now, a consumer has to be willing and able to consume a product at a certain price given then all other factors remain unchanged. (ceteris paribas)
Normal cupcake: $5
Customized: $10
My service is to provide dough kneading services.
Simple enough, these are the steps.
1) deliver the dough to a middleman (ravallo or insane)
2) once the middle has checked for quality, he would deliver it to me.
3) once received, I will begin kneading.
4) I will deliver it back to the middleman who will check for quality again.
5) consumer will pay money to middleman
6) middleman does the swap.
7) were all happy.
Thank you!
Arunbakery
My aim is to cover my costs as soon as possible and not have a break even.
I have made an opportunity cost of forgoing using resources in the public sector and moving it into the private sector. The total revenue minus off the total cost would give me my profit- which in this case, my aim is $100.
But of course, total costs can be broken into fixed costs and variable costs. Fixed cost would be the rent on my shop which amount I won't tell. And the variable costs are costs that change according to the productivity. That is, the break even point is total cost divided by the price per unit minus the cost per unit.
Enough talk.
According to my graph, my break even point of quantity of cupcakes is currently at 25. At the point of $100 for the total revenue. Thus, my total revenue is much more than my total losses.
Right to business,
I am selling customized cupcakes. I have already made 25 and hope I do not get any surpluses. As you might have known, the higher the demand is for a product, the price would increase from (according to my table) p1 to p2 which meets and equilibrium with the supply curve. Thus, as dense rises, suppliers like me would want to produce more to of course get more revenue.
Now, a consumer has to be willing and able to consume a product at a certain price given then all other factors remain unchanged. (ceteris paribas)
Normal cupcake: $5
Customized: $10
My service is to provide dough kneading services.
Simple enough, these are the steps.
1) deliver the dough to a middleman (ravallo or insane)
2) once the middle has checked for quality, he would deliver it to me.
3) once received, I will begin kneading.
4) I will deliver it back to the middleman who will check for quality again.
5) consumer will pay money to middleman
6) middleman does the swap.
7) were all happy.
Thank you!
Arunbakery
