Anna Operates a Consignment Shop Where She Sells Cloths for Women

question 52

Essay

Anna operates a consignment shop where she sells cloths for women and children. The average consignments sold per month is 1000. The average material cost and the selling price of each consignment is $8 and $20, respectively.
The monthly fixed cost to run this business is given below:
Rental cost: $750
Utilities: $150
Advertising: $35
Insurance: $100
Labor cost: $4000
Use a two-way data table to show profit changes as a function of different number of consignments sold per month and different material costs. Vary the number of consignments from 400 to 1200 in increments of 100. The eight different material costs are $5.45, $6.23, $6.95, $7.54, $8.23, $8.88, $9, and $9.45.

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Definitions:

Investment

The act of allocating resources, usually money, into assets with the expectation of generating income or profit.

Gross Domestic Product (GDP)

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, serving as a comprehensive measure of overall domestic production.

Investment

The allocation of resources, such as capital, with the expectation of obtaining an income or profit.

Corporation

is a legal entity that is separate from its owners, with its own rights and liabilities, and is created to conduct business.