Mithy’s Sweet Room Cupcakes - $7 Business Studies Quiz
‘Sweet room’ is an online shop that sells amazing cupcakes to people all around Dhaka. The owner of this shop, Mithy has rented a two-room house in Dhanmondi to make the c...
Mujtaba RafidLet's clear the math first(just for the sake of it)-
Housing cost- BDT 10,000
Total cost of employees- BDT 10,000
Total fixed cost- 10,000 + 10,000= 20,000... moreLet's clear the math first(just for the sake of it)-
Housing cost- BDT 10,000
Total cost of employees- BDT 10,000
Total fixed cost- 10,000 + 10,000= 20,000 taka
Sales price per unit- BDT 500
Variable cost per unit- BDT 250
Sales price per unit - Variable cost per unit= BDT 250
So the break-even point= 20,000/250= 80
So basically, Mithy needs to sell 80 cupcakes per month to make sure that the cost and total revenue are equal.
So what can she do to increase her sales?
A tricky question that does not have a straightforward answer because it includes so many variables.
All we can do is to lay out some tips.
Since the cupcakes are amazing, she can take a bit of risk. She can invest more money and spend more money on marketing. For example, she can use it to boost her Facebook business page to get more traction or hire a part-time online marketer who will keep a close eye on her customers and see what they want. It will be risky because the break-even point will be higher which means she must sell more... less
Mithy’s Sweet Room Cupcakes - $7 Business Studies Quiz
‘Sweet room’ is an online shop that sells amazing cupcakes to people all around Dhaka. The owner of this shop, Mithy has rented a two-room house in Dhanmondi to make the c...
Mujtaba RafidLet's clear the math first(just for the sake of it)-
Housing cost- BDT 10,000
Total cost of employees- BDT 10,000
Total fixed cost- 10,000 + 10,000= 20,000... moreLet's clear the math first(just for the sake of it)-
Housing cost- BDT 10,000
Total cost of employees- BDT 10,000
Total fixed cost- 10,000 + 10,000= 20,000 taka
Sales price per unit- BDT 500
Variable cost per unit- BDT 250
Sales price per unit - Variable cost per unit= BDT 250
So the break-even point= 20,000/250= 80
So basically, Mithy needs to sell 80 cupcakes per month to make sure that the cost and total revenue are equal.
So what can she do to increase her sales?
A tricky question that does not have a straightforward answer because it includes so many variables.
All we can do is to lay out some tips.
Since the cupcakes are amazing, she can take a bit of risk. She can invest more money and spend more money on marketing. For example, she can use it to boost her Facebook business page to get more traction or hire a part-time online marketer who will keep a close eye on her customers and see what they want. It will be risky because the break-even point will be higher which means she must sell more... less
Housing cost- BDT 10,000
Total cost of employees- BDT 10,000
Total fixed cost- 10,000 + 10,000= 20,000... more