Store Travel Time Each Way (Minutes) Price of a Suit (Dollars per suit) Local Department Store 15 122 Across Town 30 90 Neighboring City 60 78 Juanita makes $60 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $60 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. Store Opportunity Cost of Time (Dollars) Price of a Suit (Dollars per suit) Total Cost (Dollars) Local Department Store 122 Across Town 90 Neighboring City 78 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the a. local department store b. store across town c. store in the neighboring city
Store Travel Time Each Way (Minutes) Price of a Suit (Dollars per suit) Local Department Store 15 122 Across Town 30 90 Neighboring City 60 78 Juanita makes $60 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $60 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. Store Opportunity Cost of Time (Dollars) Price of a Suit (Dollars per suit) Total Cost (Dollars) Local Department Store 122 Across Town 90 Neighboring City 78 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the a. local department store b. store across town c. store in the neighboring city
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
Store
|
Travel Time Each Way (Minutes)
|
Price of a Suit (Dollars per suit)
|
|---|---|---|
| Local Department Store | 15 | 122 |
| Across Town | 30 | 90 |
| Neighboring City | 60 | 78 |
Juanita makes $60 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $60 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.
|
Store
|
Opportunity Cost of Time (Dollars)
|
Price of a Suit (Dollars per suit)
|
Total Cost (Dollars)
|
|---|---|---|---|
| Local Department Store |
|
122 |
|
| Across Town |
|
90 |
|
| Neighboring City |
|
78 |
|
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the
a. local department store
b. store across town
c. store in the neighboring city
Transcribed Image Text:Store
Local Department Store
Across Town
Neighboring City
Travel Time Each Way
(Minutes)
15
30
60
Store
Local Department Store
Across Town
Neighboring City
Price of a Suit
(Dollars per suit)
122
90
78
Juanita makes $60 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $60 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
(Dollars)
Price of a Suit
(Dollars per suit)
122
Total Cost
(Dollars)
90
78
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if
she buys it from the
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