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

question 41

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 600 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 $4 per unit, how many bouquets per month should she sell in the short run?

• A)600
• B)1,800
• C)300
• D)1,200
• E)1,320

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Definitions:

Customer Service

Customer service is the assistance and advice provided by a company to those people who buy or use its products or services, aimed at ensuring customer satisfaction.

Logistics

The detailed organization and implementation of a complex operation involving the procurement, transportation, and storage of goods and materials.

Marketing

The activities, strategies, and processes used to promote products or services to target audiences, aiming to generate interest, engagement, and sales.

Order Cycle Time

The total time that elapses from the moment a customer places an order until they receive their purchase.