Question

)) Stefan estimates the income and expenses for renting
a phone accessory store in the mall. He enters the
amounts in the table shown. Should Stefan rent a
phone accessory store? Explain.
Estimated Income and Expenses
Type Amount Frequency
Sales
$950 Each week
Services
$2,875 Each month
Rent
-54,500 Each month
Travel
-$7.50 Each day
Merchandise -$1,650 Each month

Answer 1

Answer:

Stefan should rent a phone accessory store

Step-by-step explanation:

The given information are;

The total of the estimated income and expenses are given as follows;

Sales

Type ${}$                      Amount  ${}$                      Frequency

Sales ${}$                      $ 950 ${}$                          Each week

Services ${}$                 $2,875 ${}$                        Each month

Rent  ${}$                     -$4,500 ${}$                        Each month

Travel  ${}$                   -$7.50 ${}$                          Each day

Merchandise ${}$         -$1,650 ${}$                         Each month

Therefore;

Total sale = 4×950 = $3,800

Total services = $2,875

Total income =  $3,800 + $2,875 = $6,675

Total expenses = $4,500 + $7.50×30 + $1,650 = $6,375

Total profit = Total income - Total expenses = $6,675 - $6,375 = $300

Therefore, the net profit = $300.

Therefore, given that Stefan is able to make a net profit from his investment, he should rent a phone accessory store.