The owner of a boot store, Lucy, is trying to better understand the profitability of her business. The business incurs fixed costs for store rent and insurance totaling 1000 per month. It sells each pair of boots for $125; each pair costs $75 to purchase from the supplier. Last month, the store's results were disappointing as it sold only 18 pairs of boots. The store usually sells 30 pairs per month. What are some possible reasons for the store's drop in sales this month? What suggestions do you have for Lucy to increase sales next month to return to normal levels? How could your suggestions affect the business's break-even point?
