Single and Dual Charging Rates Jeff McMillan owns a small neighborhood shopping mall. Of the 10 store spaces in the building, seven are rented by boutique owners and three are vacant. Jeff has decided that offering more services to stores in the mall would enable him to increase occupancy. He has decided to use one of the vacant spaces to provide, at cost, a gift-wrapping service to shops in the mall. The boutiques are enthusiastic about the new service. Most of them are staffed minimally, which means that every time they have to wrap a gift, phones go unanswered and other customers in line grow impatient. Jeff figured that the gift-wrapping service would incur the following costs: the store space would normally rent for $2,000 per month, part-time gift wrappers could be hired for $1,300 per month, and wrapping paper and ribbon would average $1.20 per gift. The boutique owners estimated the following number of gifts to be wrapped per month. Number of Gifts Store The Stationery Station Arts & Collectibles Wrapped per Month Kid-Sports Java Jim's Designer Shoes 175 400 100 75 20 130 100 Cristina's Closet Alan's Drug and Sundries After the service had been in effect for six months, Jeff calculated the following actual average monthly number of gifts wrapped for each of the stores. Store The Stationery Station Actual Average Number of Gifts Wrapped per Month 160 Previous Next >