A small business owner that sells widgets is trying to decide whether to open a shop in Sugarhouse or Gateway Mall. The yearly rent in Sugarhouse is $75,000 and in Gateway is. $50,000. The owner's team has already spent $70,000 doing market research in Sugarhouse and found that they could sell 1500 widgets at $100 per widget in Sugarhouse. The owner's team has also spent $5,000 doing market research in Gateway and found they could sell 750 widgets at $80 per widget in Gateway. If it costs $4 per unit to produce a widget which store should the small business owner open? Neither Sugarhouse Gateway

A small business owner that sells widgets is trying to decide whether to open a shop in Sugarhouse or Gateway Mall. The yearly rent in Sugarhouse is $75,000 and in Gateway is. $50,000. The owner's team has already spent $70,000 doing market research in Sugarhouse and found that they could sell 1500 widgets at $100 per widget in Sugarhouse. The owner's team has also spent $5,000 doing market research in Gateway and found they could sell 750 widgets at $80 per widget in Gateway. If it costs $4 per unit to produce a widget which store should the small business owner open? Neither Sugarhouse Gateway

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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