Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?
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Joe is self-employed in a store that has a rental value of R500 a month which he pays, but he can vacate the building without giving notice. His other expenses are R100 a month for maintenance. He makes R25 000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make R20 000 a year. No one else can be hired to work in the store.
Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?
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- Bob owns a restaurant. The average price per order is $15 and the average variable cost per order is $9. The restaurant remains open 6 days a week for 50 weeks per year. The rent, utilities and other related expenses are $8,000 per month. Bob pays $3,000 per month to his only employee in the restaurant. Bob also spends $12,000 every year for renovation and maintenance. If Bob wants to earn a before tax profit of $8,000 per month, what should be the daily sales (in dollars) in the restaurant?Carol moves house in order to reduce commuting time to her workplace. She moves out of her own house, which requires mortgage payments of €900 per month, to move into another house where she must pay rent of €700 per month. Though she must still pay the mortgage on her own house, she is able to lease it to friends for €500 per month. By moving to the new house, she finds it easier to work longer hours and her salary increases by €140 per month while her monthly travel costs decrease by €60. What is Carol’s monthly economic ‘profit’ from moving house? a.€60 b.€80 c.-€20 d.€0 e.€100George runs a coffee shop. His total sales are $107,758 per month. He has the following monthly expenses: rent is $5,140 wage expense is $21,076 material supplies are $10,545. George owns the building where he has his coffee shop. He could rent this space for $11,766 per month. If George only cares about earning the maximum income possible, what is the minimum monthly salary he would have to earn at his next best employment opportunity to get him to close his coffee shop? Enter a whole number with no dollar sign.
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