Answer/Step-by-step explanation:
If total income is more than total expenses, she should rent it. If the total income is less than the total expenses, she should not rent it.
Total income estimated in a month:
Sales: $950 per week = 950*4weeks = $3,800 per month
Services: $2,875 per month
Total estimated income per month = $(3,800 + 2,875) = $6,675
Total expenses estimated in a month:
Rent: $4,500 per month
Travel: $7.5 per day = 7.5*7days = $52.5 per week.
Assuming there are 4 weeks in a month, expenses for travel in a month will be:
$52.5*4 = $210
Merchandise: $1,650 per month
Total expenses estimated per month = $(4,500 + 210 + 1,650) = $6,360
Total estimated income ( > total estimated expenses in a month, therefore, Stefan should rent the phone accessory store. She will make profit.
