Description
ASSIGNMENT DETAILS ASSIGNMENT DUE:SUNDAY 12-13-15
ASSIGNMENT DESCRIPTION
1000-1500 words
You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows:
Technology (Web design and maintenance) | $5,000 |
Postage and handling | $1,000 |
Miscellaneous | $3,000 |
Inventory of cookbooks | $2,000 |
Equipment | $4,000 |
Overhead | $1,000 |
Part I
Deliverable Length: 1 graph plus calculations
You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year.
The average retail price of the cookbooks will be $30, and their average cost will be $20.
Assume that the equation for demand is Q = 40,000 – 500P, where
Q = the number of cookbooks sold per month
P = the retail price of books.
Show what the demand curve would look like for price between $25 and $35.
Address the following questions:
Suppose that you expect to sell about 22,000 cookbooks per month online, and assume your overhead, technology, and equipment costs are fixed.
What are your total costs?
Is the business worth pursuing so far?
What market structure have you entered, and why?
What can you do to guarantee success in this market?
What pricing strategy might you use?
TO AVOID ANY POINTS DEDUCTED IN THIS ASSIGNMENT ENSURE TO PROVIDE THE FOLLOWING: 3 REFERENCES AND IN-TEXT CITATIONS IN APA FORMAT. WEBSITES YOU FOUND RESEARCH FROM MUST BE INCLUDED. BE INFORMATIVE, INCLUDE LOTS OF DETAIL AND NO SHORT ANSWER RESPONSES. POINTS WILL BE DEDUCTED!!!!Explanation & Answer
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
The Silent Patient
by Alex Michaelides
Night
by Elie Wiesel
The President is Missing
by James Patterson, Bill Clinton
Hiroshima
by John Hersey
To the Lighthouse
by Virginia Woolf
Ethan Frome
by Edith Wharton
Animal Farm
by George Orwell
The Point of it All - A Lifetime of Great Loves and Endeavors
by Charles Krauthammer
Things That Matter
by Charles Krauthammer