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Lori approaches Pedro about creating a special wine for her daughter's upcoming wedding. Lori will buy 50 bottles of Pedro's wine, but the order will have fixed costs for special labeling and delivery of $300o. What is the breakeven price Pedro will need to charge to breakeven on this special order?

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Answer:

New Break Even volume  74.42 or 74 units

Explanation:

Assuming the following given data:

A . Fixed Cost  $893

B . Sale price per bottle  $28

C = $ 14 + 2= $16   ----> New Variable cost per bottle

D = B - C  -----> New unit contribution margin  $12

E = A/D  -------> New Break Even volume  74.42 or 74 units

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