When should the store be opened and closed

Assignment Help Microeconomics

Reference no: EM132155690

Question: Cathy Gwynn, a recently graduated engineer, decided to invest some of her money in a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and rather high prices. Cathy wants to study the business to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable. Cathy assembled the following information.

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 incremental operating costs, is $20 per hour. To maximize profit, when should the store be opened, and when should it be closed?

Reference no: EM132155690

Questions Cloud

What was the cost per square foot last year : Your boss is the director of reporting for the Athens County Construction Agency (ACCA). It has been his job to track the cost of construction in Athens County.

How can artists use their creations to promote engagement : How can artists use their creations to promote engagement in social justice/citizenship in their society and community?

Learned about effective innovation architecture : What are the most valuable things you learned about effective innovation architecture?

Determining the experimental unit : What's the experimental unit? What measurements are taken on the experimental units? Is this a problem with one or two independents samples?

When should the store be opened and closed : Cathy Gwynn, a recently graduated engineer, decided to invest some of her money in a "Quick Shop" grocery store. The store emphasizes quick service, a limited.

Complaints about mistreating employees and harassment : Workers bring complaints about mistreating employees and harassment.

Explore some social science research studies : In this discussion we will explore some social science research studies that are now considered unethical.

What are the critical values that correspond : What are the critical values that correspond to a 95% confidence level and a sample size of 93?

State what the values of p are for which it is finite : For each, make sure to clearly state what the values of p are for which it is finite.

User Account

All Pages