Francesca would like to lease a coffee cart in Whistler, B.C. The lease is $800 per month,
Question:
Francesca pays $1,000 per month for her condominium. She could store the cart overnight in the condo's garage, which is currently unused. Real estate developers in Whistler estimate that about 20% of the cost of a residential building is for the garage. At present, Francesca is earning $2,400 per month as a ski instructor for one of the big ski areas. In the summertime, she earns about the same income by working as a kayaking instructor.
REQUIRED
A. List each piece of quantitative information in this problem. For each item, indicate whether it is relevant to Francesca's decision and explain why.
B. If Francesca leases the cart and works 30 days in a month, how many hours will she have to work each day, on average, to be at least as well off fi nancially as she is in her current job?
C. If Francesca wants to work only 25 days per month, how much will revenues have to increase for her to work 4 hours per day and be as fi nancially well off as she is in her current job?
D. Can Francesca be certain that her revenues will average $32 per hour? Why or why not?
E. What other information might help Francesca with this decision?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Question Posted: