Pots, seeds, and watering systems for the working family. Pure Plants Co. Pots, seeds, and watering systems for the working family.
Start-Up Materials Item Quantity Today’s Price Conversion Price Pottery turntable 1 $10.70 $0.58 Cast Iron pot $15.00 $0.81 3’ metal tube $8.86 $0.48 Steel marver $25.00 $1.36 Shears $8.83 Bucket $18.25 $0.99 Total Start-Up Cost: $4.70
Per Product Materials Item Quantity Today’s Price Conversion Price Clay 5 lbs $4.04 $0.22 Glass 15 oz $5.00 $0.27 Seeds 5 oz $1.48 $0.08 Paper envelope 1 $0.25 $0.01 Total Start-Up Cost: $0.59
Price Per Product $1.20 We chose to charge this because it about doubled the cost of what it took to make one product. This way we could reach the break-even point faster and begin to make a profit. It is a low enough price that it is fair for a working family in the Gilded ages.
Equations Cost Equation: y=4.70+0.59x Income equation: y= 0.62x
Table of Values Items Cost Income Profit X 4.70+.59x 0.62x - 10 10.60 6.20 -4.40 20 16.50 12.40 -4.20 30 22.40 18.60 -4.00 40 28.30 24.80 -3.50 50 34.20 31 -3.20 100 63.70 62 -1.70 150 93.20 93 -0.20 200 122.70 124 1.30 250 152.20 155 2.80 300 181.70 186 4.30 350 211.20 217 5.80 400 240.70 248 7.70 450 270.20 279 8.80 Table of Values
Table of Values: Results We reach the break-even point at about 200 pot kits sold. From there our profits climb at relatively $1.50 per 50 sales. If we were to sell about 200 kits during the Gilded Ages, we would gain profit very quickly. This is because our income is more than our price per product, so we only have to pay off the $4.70. The table shows this when we sell the original ten kits.
Break-Even Point Graph Money earned Kits sold
Graph Results Our official break-even point is (156.666, 97.146) which means we have to sell 157 kits to earn a profit. If our business sold that many we would begin to earn more than we paid, as the green line eventually exceeds the red line.
Break-Even Point Problem and Solution 4.70+0.59x=0.62x -0.59 -0.59 4.70=0.03x /0.03 /0.03 156.66=x Break-Even Point: 156.66
Reasonableness of Probability We believe that our business is very reasonable. In a big city like New York, there were millions of residents, many who were struggling through economic hardship. At least 200 to 500 may be likely to buy a product like this, considering the population.
Sources Amazon.com Onlinemetals.com Mscdirect.com Uline.com Lowes.com Stuccu.com Hrw.com Livingcityarchive.org