Carla Sells Hot Coffee, Cider and Tea from a Sidewalk

question 23

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) $4.50
• B) $4.00
• C) $5.00
• D) $0.80

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Definitions:

Cause of Action

A set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.

Breach of Contract

The failure to perform any term of a contract, written or verbal, without a legitimate legal excuse.

Intended Beneficiary

An individual or group for whom a contract is specifically designed to benefit.

Promisor

The person who makes a promise or agreement to do something, especially in a contract.