Anna Operates a Consignment Shop Where She Sells Cloths for Women

question 19

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 a. Build an influence diagram that illustrates how to calculate profit.
b. Using mathematical notation, give a mathematical model for calculating profit.
c. Implement your model from part (b) in Excel using the principles of good spreadsheet design.

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Definitions:

Industrialized World

Countries that have experienced significant industrial growth and development, characterized by high levels of production and technological advancement.

Great Recession

A significant worldwide economic downturn that began in 2007 and lasted until 2009, marked by high unemployment and severe financial instability.

Gross Private Investment

The total amount of investment in the economy by private sector entities, including investments in equipment, structures, and inventory changes.

Obama

Refers to Barack Obama, the 44th President of the United States, serving from 2009 to 2017.