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 [tex]{}[/tex] Amount [tex]{}[/tex] Frequency
Sales [tex]{}[/tex] $ 950 [tex]{}[/tex] Each week
Services [tex]{}[/tex] $2,875 [tex]{}[/tex] Each month
Rent [tex]{}[/tex] -$4,500 [tex]{}[/tex] Each month
Travel [tex]{}[/tex] -$7.50 [tex]{}[/tex] Each day
Merchandise [tex]{}[/tex] -$1,650 [tex]{}[/tex] 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.
