Dolph and Evan Started the DE Restaurant in 20X3

question 37

Essay

Dolph and Evan started the DE Restaurant in 20X3.They rented a building,bought equipment,and hired two employees to work full time at a fixed monthly salary.Utilities and other operating charges remain fairly constant during each month.
During the past two years,the business has grown with average sales increasing 1% a month.This situation pleases both Dolph and Evan,but they do not understand how sales can grow by 1% a month while profits are increasing at an even faster pace.They are afraid that one day they will wake up to increasing sales but decreasing profits.
Required:
Explain why the profits have increased at a faster rate than sales.Use the terms variable costs and fixed costs in your response.

Understand the influence of historical and contemporary factors on racial and ethnic dynamics.

Understand various research methods used in psychology.

Recognize the importance of critical thinking in psychological research.

Understand the role of observation in psychological research.

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Definitions:

Standard Deviation

A statistic that quantifies the dispersion or variability of a dataset, measuring the average distance between each data point and the mean.

Z-score

A quantitative measure that demonstrates the correlation of a specific value to the mean of a dataset, identifying its separation from the mean by counting the standard deviations.

Standard Normal Random Variable

A type of random variable that has a mean of 0 and a standard deviation of 1, following the standard normal distribution.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the data set.