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Anne owns an art supply store. Anne is analyzing the store's expenses and income because she wants to increase the store's profits. The expenses include renting 1,250 square feet of space for $13,750 per month. The store has only one employee, who is paid $8.00 per hour plus 8% commission. Much of the

store's income comes from the sales of blank painting canvases and frames. The table shows the prices of the canvases and frames sold at the store.

User Beduin
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2 Answers

5 votes

Final answer:

Mary Ann's monthly expenses are greater than her after-tax income, so she is not able to save 10% of her income.

Step-by-step explanation:

To determine if Mary Ann would be able to save 10% of her after-tax monthly income, we need to calculate her monthly expenses and compare them to 10% of her after-tax income. Here is the budget table:

ExpenseAmountRent$790Cell Phone$75Utilities$45Cable TV and Internet$65Groceries$450Entertainment$250Car Payment$350Gasoline$120

Adding up the expenses, Mary Ann's total monthly expenses amount to $2,145. Therefore, she is not able to save 10% of her after-tax income because her expenses are greater than her income. Budget Analysis and Decision Making

When analyzing scenarios such as Anne's art supply store expenses or Mary Ann's monthly budget, it's crucial to calculate the total expenses and compare them to the income. Mary Ann aims to save 10% of her monthly income of $2,589.10 which equals to $258.91. Let's create a budget table for Mary Ann's expenses:

Rent: $790

Cell phone: $75

Utilities: $45

Cable TV and Internet: $65

Groceries: $450

Entertainment: $250

Car payment: $350

Gasoline: $120

Adding up these expenses gives us a total of $2,145. Therefore, Mary Ann is left with $444.10 after expenses, which allows her to save more than the targeted 10% of her income. For the Yoga Center, we examine three scenarios with different levels of revenues and expenses to decide whether to continue the business. The last given scenario presents an accounting profit of $115,000 for Eryn's potential business, not including her opportunity cost of $125,000 salary from her current job.

User Mats N
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5.6k points
6 votes
Answer:
$590

Correct me if I’m wrong
User DiederikEEn
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5.6k points