Kimberly wants to use her knitting skills to make a little extra money so she can enjoy a theatre weekend with her besties. She's got t pattern down for a hat, scarf, and mittens, but she realizes that her available time is limited. She should be able to sell as many of any item as she can make (they all sell for $14), but she wants to make sure she's making the best use of her time. See below for cost and time information. Time (minutes) Cost of yarn (per unit) Hat 20 $5 Scarf 30 $7 Mittens 40 $3 Calculate the contribution margin per unit of the scarce resource for each item. (Round answers to 2 decimal places, e.g. 15.25.)
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- Susan plans on selling her mugs. She has created two scenarios and wants to know which will provide her the better profit. In order to help her figure this out, she asks you to figure out when the two options are the same. Option 1: Sells at a local store. It costs her $445 for a shelf at the store, but it's in an upscale neighborhood that gets lots of foot traffic so she can sell the mugs for $30 in profit. Option 2: Sell at the local farmers market. It costs her $100 for a booth, but busy can vary quite a bit. She figures she call sell the mugs for a $7 profit. When are the two options the same?Mariah is looking to earn extra money this summer by walking her neighbor Jamie's dog each day. Jamie needs her dog walked each day but does not have the extra time, fortunately her neighbor Mariah is interested in earning extra money for the summer. Mariah, however; does not want to spend a lot of time, maybe twenty minutes to half an hour. She was hoping to earn $10-$12 each day. Jamie does not want to spend a lot of money maybe $8 each day but wants her dog walked adequately; possibly an hour each day. What is Jamie's reservation point? $8Ginny, who lives in Houston, is trying to decide between the following car models: Brand and Model Chevy Sonic Toyota Camry Ford Escape Hybrid Dodge 1500 Pickup Cost $14,255 17,950 30,570 37,590 She's currently accumulated a down payment of $5,000 and she has determined that she can afford maximum payments of $375 per month. Her initial research on the current cost of auto loans has found that her lowest cost loan would be made by a bank and would require an interest rate of 6% for five years. Given this information, the maximum amount that Ginny can afford to pay for her new car is can afford to purchase, without stretching her budget, is: OOO The Chevy Sonic The Toyota Camry The Dodge 1500 Pickup The Ford Escape Hybrid I and the most expensive car that she
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