Question
How much profit should Store A be earning in the Summer? How much profit should Store B be earning in the Summer? How much profit
How much profit should Store A be earning in the Summer?
How much profit should Store B be earning in the Summer?
How much profit (loss) should Store A be earning in the Winter?
How much profit (loss) should Store B be earning in the Winter?
Should store A operate or shut down in the winter Yes or No?
Should store B operate or shut down in the winter Yes or No?
Overall, how much profit should you be earning in a year from both locations?
Should we plan to keep store A open all year or should we be trying to sell this location?
Should we plan to keep store B open all year or should we be trying to sell this location?
If we do sell store B, how would your answer to #7 change? In other words, how much profit does store A earn in a given year by itself?
Store A Store B Average Average Marginal Total CostsCosts Total Marginal RevenuRevenue Averag VariableMarginal Quantity Price Variable Costs Total eTotal CostsVariable Marginal Average RevenTotal CostsV Reveaue Revenue CostsTotv Costs S 20.00 S 25.00 S 28.00 S 31.00 S 36.00 S 43.00 S 54.00 S 67.00 S 83.00 S 101.00 S 120.00 15.50 4.00 12.50 11.00 9.50 8.00 6.50 5.00 $ 20.00 $ 25.00 $ 28.00 $ 31.00 $ 36.00 $ 43.00 S 54.00 S 67.00 $ 83.00 $ 101.00 $ 120.00 15.00 4.00 11.00 9.00 7.00 2.00 10 0.50 Store A Winter) Store B Variable MargnaTtalVariable Costs Average Average Vriae MralVariable AveraRe Total Marginal Reveaue Revenue Total Marginal Revenue Revenue Total Cost Costs Average Price Revenue Total Costs Costs 11.00 0.00 9.00 8.00 7.00 S 20.00 S 25.00 S 28.00 S 31.00 S 36.00 S 43.00 S 54.00 S 67.00 S 83.00 4.00 3.50 3.00 2.50 2.00 $ 20.00 $ 25.00 $ 28.00 $ 31.00 $ 36.00 $ 43.00 S 54.00 S 67.00 $83.00 1.00 5.00 0.50 4.00Step by Step Solution
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