Cathy Gwynn for a class project is analyzing a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and higher prices. Cathy wants to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable. Daily Sales in Time Period the Time Period 0600–0700 $ 40 0700–0800 80 0800–0900 120 0900–1200 400 1200–1500 500 1500–1800 600 1800–2100 800 2100–2200 200 2200–2300 60 2300–2400 120 2400–0100 40 The cost of the groceries sold averages 70% of sales. The incremental cost to keep the store open, including the clerk's wage and other operat- ing costs, is $22 per hour. To maximize profit, when should the store be opened, and when should it be closed?

Cathy Gwynn for a class project is analyzing a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and higher prices. Cathy wants to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable. Daily Sales in Time Period the Time Period 0600–0700 $ 40 0700–0800 80 0800–0900 120 0900–1200 400 1200–1500 500 1500–1800 600 1800–2100 800 2100–2200 200 2200–2300 60 2300–2400 120 2400–0100 40 The cost of the groceries sold averages 70% of sales. The incremental cost to keep the store open, including the clerk's wage and other operat- ing costs, is $22 per hour. To maximize profit, when should the store be opened, and when should it be closed?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 2TP: You have decided to open up a small convenience store in your hometown. As part of the initial...

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