Getting to School for Your 8 A

question 130

Essay

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 $500 per month and salaries to your friends to run the business will be another $500 per month. It will cost you 50 cents each to buy the pre- packaged snacks. You believe you can sell 2,000 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?

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Definitions:

Cognitive Impact

The effect of various factors on cognitive processes, such as perception, memory, and reasoning, influencing how we think and understand the world.

Stress

A physical or psychological response to internal or external pressures, challenging the individual's ability to cope.

Less Stress

A condition of experiencing lower levels of strain and tension, which contributes to better mental and physical health.

Effective Options

Viable and efficient choices or strategies that can be implemented to achieve desired outcomes.