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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
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]
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