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Maryann and Don Want to Open Their Own Deli

question 5

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Maryann and Don want to open their own deli.To do so, Maryann must give up her job, at which she earns $20, 000 per year, and Don must give up his part-time job, at which he earns $10, 000 per year.They must liquidate their money market fund, which earns $1, 000 interest annually.The rent on the building is $10, 000 per year, and expenses for such necessities as utilities, corned beef, and pickles are $35, 000 annually.What minimum amount of revenue per year would make it worthwhile, financially, for Maryann and Don to operate the deli?


Definitions:

American Consumption

Patterns and behaviors of expenditure on goods and services by households and individuals in the United States.

Steadily Rising Wages

A consistent increase in the amount of money earned by workers over a period of time.

Falling Prices

A situation in which the cost of goods and services decreases over time, which can result from factors like decreased demand or increased supply.

Mexican-American Identity

The cultural and national identity of Americans of Mexican descent, shaped by the history of Mexican-American relations and the blending of Mexican and American cultures.

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