Question

The fixed cost of conducting the four promotions is estimated to be 18000 dollars with a variable cost of 3.75 dollars per customer for mailing and handling costs. What is the minimum number of customers required by the company in order to cover the cost of promotions? (Round your answer to the next highest integer.)

Answer 1

Answer:please refer to the explanation section

Explanation:

The Question is incomplete. the question requires us to calculate minimum number of customers required to cover costs of promotions, to calculate the minimum number of customers required we need a price per customer. let us assume the price $6

Variable costs  = $3.75

Fixed costs = $18000

Minimum Customers Required = Fixed costs/(Price - Variable cost)

Minimum Customers Required = 18000/6 - 3.75 = 8000

8000 customers are required