Table 1-2 Thuy Anh Runs a Small Flower Shop in the Town

question 106

Multiple Choice

Table 1-2

Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of extra hours the flower shop is open as shown in the table above. She would have to hire a worker for those extra hours at a wage rate of $16 per hour.
-Refer to Table 1-2.Using marginal analysis, by how many hours should Thuy Anh extend her flower shop's hours of operations?

• A)2 hours
• B)3 hours
• C)4 hours
• D)5 hours
• E)6 hours

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Definitions:

Net Cash Flow

Net cash flow is the amount of cash generated or lost over a specific period, resulting from a company's operating, investing, and financing activities.

Net Income

The total profit of a company after all revenues, cost of goods sold, operating expenses, and taxes have been subtracted.

Cash Payback Period

The expected period of time that will elapse between the date of a capital expenditure and the complete recovery in cash (or equivalent) of the amount invested.

Fixed Asset

A durable, physical asset that a company possesses and utilizes in its activities to produce revenue over an extended period.