Question
At 42 years of age, Enrique Chavez was starting to think more and more about retirement. After 17 years of running one of the Bay
At 42 years of age, Enrique Chavez was starting to think more and more about retirement. After 17 years of running one of the Bay Area's most popular tattoo parlor, Ink Hombre, he decided to take on a partner--his 21-year-old bilingual niece Diana. Her words still echoed in his head the same words she repeated every time someone left his shop to go elsewhere: "You should offer body piercing." She would go on to say, "Piercing gives people the opportunity to express their identity, just like a tattoo." She was right, of course. After she got her piercing certification, Diana came to work with Enrique full-time. But she didn't come cheaply. Between her salary and benefits, she was costing the business $1,000 per month! Enrique kept very detailed records, and her first month's sales were a bit disappointing. Piercings were offered as Category I, II, or III, and cost $35, $55, and $75 for stainless steel jewelry, respectively, and $55, $85, and $120 for gold. Diana sold five Category I, two category II, and three Category III in stainless, and one each of categories I, II, and III in gold. Given the total sales value for Diana's first month, how long will it take for her to break even with her salary and benefits, assuming a 10% increase in sales value each month? Is the increase more likely to come from increased number of sales or a higher average sales value? Justify your answers by SHOWING YOUR WORK. You can either type your work or take a picture and insert it as an image. (The computer will mark this wrong but I will grade this question manually and give points back). Question
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