Marta estimates that the fixed costs associated with opening her new hair salon are $100,000. She expects the salon to attract 500 new customers in the first year, each of which will cost $25 to service. Marta expects to generate $50,000 per year in revenue. For Marta, the total cost of opening her hair salon and staying in business for one year will be...

a) 50,000

b) 87,500

c) 100,000

d) 112,500

e) 150,000

Answer rating: 100% (QA)

Total cost is the summation of the fixed cost and the variable cost Fixed cost is that cost wh... View the full answer