Hellen and Shana run their own business. Every Friday they take two gas grills and grill burgers in front of the Unilus Leopards Campus hall. Working from noon till 6pm, they are able to serve 250 hungry students. They are both equally good in what they are doing, so their wages are equal. One day Shana was not feeling well, so Hellen had to go there alone. Of course, she has chosen to use only one grill. Within the same period of time she was able to serve 120 customers. What has happened to the average cost of each burger? Show your work. b. What can be said about the returns to scale for their business? Explain.
Hellen and Shana run their own business. Every Friday they take two gas grills and grill burgers in front of the Unilus Leopards Campus hall. Working from noon till 6pm, they are able to serve 250 hungry students. They are both equally good in what they are doing, so their wages are equal. One day Shana was not feeling well, so Hellen had to go there alone. Of course, she has chosen to use only one grill. Within the same period of time she was able to serve 120 customers. What has happened to the average cost of each burger? Show your work. b. What can be said about the returns to scale for their business? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hellen and Shana run their own business. Every Friday they take two gas grills and grill burgers in front of the Unilus Leopards Campus hall. Working from noon till 6pm, they are able to serve 250 hungry students. They are both equally good in what they are doing, so their wages are equal.
One day Shana was not feeling well, so Hellen had to go there alone. Of course, she has chosen to use only one grill. Within the same period of time she was able to serve 120 customers.
- What has happened to the average cost of each burger? Show your work.
- b. What can be said about the returns to scale for their business? Explain.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education