Alfred Toliver needs extra money quickly to help cover some unexpected school expenses. Mr. Toliver has learned fortune-telling skills through his long friendship with Roger Greene, who tells fortunes during the day at the city market. Mr. Greene has agreed to let Mr. Toliver use his booth to tell fortunes during the evening for a rent of $100 per night.
a. What is the booth rental cost both in total and per customer if the number of customers is 5, 10, 15, 20, or 25? Round your figures to 2 decimal points.
b. Is the cost of renting the fortune-telling booth fixed or variable relative to the number of customers?
c. Draw two graphs. On one, plot total booth rental cost for 5, 10, 15, 20, and 25 customers; on the other, plot booth rental cost per customer for 5, 10, 15, 20, or 25 customers.
d. Mr. Toliver has little money. What major business risks would he take by renting the fortune-telling booth? How could he minimize those risks?