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A coffee shop takes two steps to make a cup of coffee. Step 1 takes 30 seconds. Step 2 takes 20 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $20 per hour. Assume wages are a variable cost. Each coffee is sold for $10. Material costs are $3 per cup. Fixed costs are $200 per hour. Assume demand is unlimited. How much profit does the coffee shop make per hour?     a $500   b $600   c $700   d $800

A coffee shop takes two steps to make a cup of coffee. Step 1 takes 30 seconds. Step 2 takes 20 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $20 per hour. Assume wages are a variable cost. Each coffee is sold for $10. Material costs are $3 per cup. Fixed costs are $200 per hour. Assume demand is unlimited. How much profit does the coffee shop make per hour?     a $500   b $600   c $700   d $800

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A coffee shop takes two steps to make a cup of coffee. Step 1 takes 30 seconds. Step 2 takes 20 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $20 per hour. Assume wages are a variable cost. Each coffee is sold for $10. Material costs are $3 per cup. Fixed costs are $200 per hour. Assume demand is unlimited. How much profit does the coffee shop make per hour?

 

  a

$500
  b

$600
  c

$700
  d

$800
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