Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own a property on Main Street on which a small, vacant take-out pizza stand sits. There are other vacant take-out pizza stands in the

You own a property on Main Street on which a small, vacant take-out pizza stand sits.

There are other vacant take-out pizza stands in the same locale (i.e. Main Street) as well as on the less busy Side Street locale. From your market analysis, you are confident that the sites will attract the following number of pizza sales each month (based on their locale):

Main Street: 450

Side Street: 300

The market price for pizzas in the city is $7.00. You know the cost of running and maintaining a pizza stand (paid by the operator of the business of course) is fixed at $900 per month.

Jobs in another industry which pay $200.00 per month are plentiful in the city and there fore $200.00 is the minimum profit after rent operators must achievein order for them to run a pizza stand. What is a potential operator's monthly profit, before rent, at each of the two locales (Main Street and Side Street)?


Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the potential operators monthly profit before rent at each of the two locales Mai... 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

Essentials Of Services Marketing

Authors: Jochen Wirtz

4th Edition

1292425199, 9781292425191

More Books

Students also viewed these Finance questions

Question

If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?

Answered: 1 week ago