Tuesday, 26 November 2024

November 26, 2024

 8C, 8D Art

- how many pairs you have to sell to make your first million>

In a Google Doc, record the following:

1) Price your shoes. (note, if the shoe price is too high, say $350, fewer pairs will be sold because people can't afford them)

2) Assume production cost from China is $30/pair

3) Hire someone famous to promote the shoes (e.g. Taylor Swift. Pay her $50/pair for promotion. Less famous, cheaper to hire)

4) How many pairs you have to sell to make one million dollars?


Calculations:

- Assume 5000 pairs will be sold

5000 x $350/pair = $1 750 000 (revenue)

- production cost 5000 pairs x $30 = $150 000

- Taylor cost 5000 pairs x $50 = $250 000

- my profit: revenue – cost  ($1 750 000 – $150 000 – $250 000 = $1.35 million Jackport)


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