Rodrigo operates a dry-cleaning service and charges customers $5 per article of clothing. Based on his knowledge of operations, the 1,000th piece of clothing costs him $4.95 to dry clean. If he takes additional business, however, the 1,001st piece will cost $5 for the service. Does he take the additional business? a. no, he has hidden costs that far exceed his estimate of $5, so he loses money. b. no, taking on additional business doesn't earn him any money. c. yes, if he turns away business, his service will be forced to close. d. maybe. if a competitor is accepting that many customers, he must at least equal that amount. e. yes. at a $5 cost, he breaks even and is indifferent. he necessarily turns away business when the cost of the additional unit exceeds the income.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Rodrigo operates a dry-cleaning service and charges customers $5 per article of clothing. Based on his knowledge of operations, the 1,000th ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A broker, who represents a seller under an exclusive right to sell listing receives two offers for the property at the same time, the first from one of the broker's salespeople and the second from a cooperating broker. What should the broker do
Answers (1)
Aruba Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $ 57 comma 000.
Answers (1)
Jack is considering a management position in an accounting firm. If Jack can't negotiate a salary of at least $90,000, he plans to keep his current job. The new firm cannot pay more than $95,000.
Answers (1)
a plot of land is rectangle and has an area of x^2-5x-24m^2. the length is x+3m. find the width of the plot.
Answers (1)
Mark works strictly on commission of his gross sales from selling two different products for his company. last month, his gross sales were $90 comma 00090,000.
Answers (1)
New Questions in Business
At which step in the control process do managers evaluate whether performance deviates from the standards of performance
Answers (1)
Identify whether each statement in the following table best illustrates the concept of consumers' surplus, producers' surplus, or neither.
Answers (1)
How many units would have to be sold to yield a target operating income of $26,000, assuming variable costs are $27 per unit, total fixed costs are $2,000, and the unit selling price is $32?
Answers (1)
Zane's leadership style includes delegating tasks to his employees and giving them the freedom to perform the tasks using any strategy they see fit. this demonstrates which of the critical management skills suggested by katz
Answers (1)
Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, community recycling, and education. This initiative is an illustration of a CSR program. True or False?
No Answers