Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.

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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Travel Time Each Way
Price of a Dress
(Minutes)
(Dollars per dress)
Store
15
102
Local Department Store
30
85
Across Town
Neighboring City
60
76
Juanita makes $42 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $42 in lost income.
Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer
the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Opportunity Cost of Time
Price of a Dress
Total Cost
(Dollars)
(Dollars per dress)
(Dollars)
Store
102
Local Department Store
85
Across Town
76
Neighboring City
Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if
she buys it from the
Caun 8 ContinUe
Transcribed Image Text:Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Store 15 102 Local Department Store 30 85 Across Town Neighboring City 60 76 Juanita makes $42 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time Price of a Dress Total Cost (Dollars) (Dollars per dress) (Dollars) Store 102 Local Department Store 85 Across Town 76 Neighboring City Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the Caun 8 ContinUe
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