Question

3. Raymond decides to set up a lemonade stand every weekend for the next four weeks to save up for the latest X-Men comic. He has to pay his brother Robert $10 as a one-time payment for him to not bully Raymond or drive his customers away. The lemons and sugar cost him $10 (the water is free) and his dad offers to set up his stall for him. He ends up making $15 his first weekend. Frank, his father, notices this and advises Raymond to shut down the stall; while Marie, his mother, advises him not only to set up the stall next weekend but to increase production even more. Raymond is extremely confused. Who do you think he should listen to?

Answer 1

Answer:

It should listen to his mother.

Explanation:

This week cash flow handled the fixed cost of 10 to Raymond's brother.

His father is not considering that so it thinks the business flops.

Now that fixed cost are paid the following weeks his gains will increase entirely based on the sales volume so, it is better to continue the business for the next three weeks.