Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two competing food vendors were located side by side at a state fair. Both occupied buildings of the same size, paid the same rent, Kshs

image text in transcribed Two competing food vendors were located side by side at a state fair. Both occupied buildings of the same size, paid the same rent, Kshs 1,250, and charged similar prices for their foods. Vendor a employed three times as many employees as B and had twice as much income as B even though B had more than half the sales of A. Other data are as follows: You are required to answer the following: i) Explain why vendor A is twice as profitable as Vendor B. (12 marks) ii) By how much would vendor B 's sale have to increase in order to justify the doubling of the number of employees at the same rate of pay if B 's desired operating income is Kshs 350 ? (8 marks) [Total: 20 Marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Management Perspective

Authors: Nelson Macwan

1st Edition

6206142191, 978-6206142195

More Books

Students also viewed these Accounting questions

Question

Write a Python program to check an input number is prime or not.

Answered: 1 week ago

Question

8. Demonstrate aspects of assessing group performance

Answered: 1 week ago