Your Friend Herman Operates a Neighborhood Lemonade Stand

question 49

Short Answer

Your friend Herman operates a neighborhood lemonade stand. He asks you to be his financial advisor and wants to know how much lemonade he can make with the $3.12 he happens to have on hand. The only information he can give you is that once last month he spent $2 and made 19 glasses of lemonade, and another time he spent $5 and made 83 glasses of lemonade. You decide to use this data to create an exponential cost function, , giving the cost in dollars of making q glasses of lemonade. How many full cups of lemonade can Herman make with this model?

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Accrual

A method in accounting that recognizes financial events by matching revenues with expenses at the time the transaction occurs, not when payment is made or received.

Supplies Expense

The cost associated with the consumable items used in the operation of a business, such as office supplies or cleaning materials.

Adjusting Journal Entry

An entry in accounting that is made at the end of an accounting period to record any unrecognized income or expense for the period.