CVP Q1 Daniel Ricardo would like to lease a coffee cart in Melbourne. The lease is $1,800 per month, and a city licence to sell food and beverages costs $40 per month. The lessor of the cart has shown Daniel Ricardo that gross revenues average $52 per hour. The out-of-pocket costs for ingredients are generally about 40 per cent of gross revenues. Last year Daniel Ricardo paid 25 per cent of her income in government taxes. Daniel Ricardo pays $ 1,500 per month for her apartment. She could store the cart overnight in the apartment garage, which is currently unused. Real estate developers in Melbourne estimate that 20 per cent of the cost of a residential building is for the garage. At present, Daniel Ricardo is earning $ 3,000 per month as a receptionist in a 5 star hotel in Melbourne.

REQUIRED: (a) List 3 pieces of quantitative (financial) information in this problem that is relevant to Daniel Ricardos decision and justify your answer. (b) If Daniel Ricardo 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 financially as she would in her current job? (c) If Daniel Ricardo wants to work only 25 days per month, how much will revenues have to increase per hour for her to work four hours per day and be as financially well off as she is in her current job? (d) What other information might help Daniel Ricardo with this decision?