Understanding Financial Statements

Exercise

1. (AACSB) Analysis

You're the president of a student organization, and to raise funds for a local women's shelter you want to sell single long-stem red roses to students on Valentine's Day. Each prewrapped rose will cost $3. An ad for the college newspaper will cost $100, and supplies for posters will cost $60. If you sell the roses for $5, how many roses must you sell to break even? Because breaking even won't leave you any money to donate to the shelter, you also want to know how many roses you'd have to sell to raise $500. Does this seem like a realistic goal? If the number of roses you need to sell in order to raise $500 is unrealistic, what could you do to reach this goal?