Mary Magnolia from Your Workbook Has Variable Costs Equal to Y²/F

question 51

Multiple Choice

Mary Magnolia from your workbook has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 200 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $6 per unit, how many bouquets per month should she sell in the short run?

• A)200
• B)100
• C)600
• D)900
• E)660

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Definitions:

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Regulatory Issues

Concerns related to the rules, laws, and guidelines that govern how businesses and industries operate.

Financial Projection

is an estimate of future financial outcomes for a project or company, often including income, expenses, and cash flow forecasts.

Cash Flow Estimate

An assessment of the expected amount of money coming into and going out of a business over a specific period, crucial for budgeting and financial planning.