Question

Martha estimates that the fixed costs associated with opening her new hair salon are $100,000. She expects the salon to attract 500 new customers in the first year, each of which will cost $25 to service. Martha expects to generate $50,000 per year in revenue. For Martha, the total cost of opening her hair salon and staying in business for one year will be

a) 50,000
b) 87,500
c) 100,000
d) 112,500
e) 150,000

Answer 1

The Correct Awnser is (A) because when you do the math, thats what you come up with