Question: Shawn Corder needs extra money quickly to help cover some unexpected school expenses. Mr. Corder has learned fortune-telling skills through his long friendship with Fred

Shawn Corder needs extra money quickly to help cover some unexpected school expenses. Mr. Corder has learned fortune-telling skills through his long friendship with Fred Molloy, who tells fortunes during the day at the city market. Mr. Molloy has agreed to let Mr. Corder use his booth to tell fortunes during the evening for a rent of $90 per night.

Required

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 two 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. Corder has little money. What major business risks would he take by renting the fortune telling booth? How could he minimize those risks?

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a Number of Customers a 5 10 15 20 25 Total rental cost b 90 90 90 90 90 Cost per customer b a 1800 900 600 450 360 b Since the cost of renting the bo... View full answer

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