Carla Sells Hot Coffee, Cider and Tea from a Sidewalk

question 45

Multiple Choice

Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $600, Depreciation = $0. Calculate Carla's average sale per customer.

• A) $5.00
• B) $4.00
• C) $4.50
• D) $4.67

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Definitions:

Covert Observations

Observing subjects without their knowledge for research or information-gathering purposes.

Slash-And-Burn Agriculture

A method of farming that involves cutting and burning plants in a forest or woodland to create fields.

Subsistence Agriculture

Farming practice in which crops are grown only to meet the needs of the farm family.

Consumption

The process in which energy and resources are used, often referring to the intake of food by organisms.