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Getting to school for your 8 a.m. class doesn't leave much time for breakfast, and you are quite hungry by the time class ends. It is a long walk to the cafeteria, the lines are long once you get there, and you find yourself having to decide between having breakfast and getting to your next class on time. Many of your friends have expressed the same problem. The administration has agreed to let you set up a table just outside the building where you will sell various snacks for $1 each. You have agreed to pay the administration $400 per month and salaries to your friends to run the business will be another $400 per month. It will cost you 60 cents each to buy the pre-packaged snacks. You believe you can sell 2,500 snack packs per month.
a. What are the total fixed costs per month?
b. What are the total variable costs per month?
c. What is the fixed cost per snack pack?
d. What is the variable cost per snack pack?
e. What is the average cost per snack pack?
f. What is the average profit margin per snack pack?
g. Based on your analysis, should you start the snack pack business?
Shocks
Sudden and disturbing events or experiences that cause emotional or physical disturbance.
Ulcers
Medical condition characterized by open sores that develop on the lining of the stomach, small intestine, or esophagus, often resulting from stress or bacterial infections.
Workforce Diversity
The inclusion of individuals from various backgrounds, cultures, genders, ages, and abilities in the workplace, enhancing creativity and problem-solving.
Global Competition
The process where companies and organizations worldwide compete against each other for market share, talent, and innovation across borders.
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