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Tanya 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. Tanya expects to generate $50,000 per year in revenue. For Tanya, 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.

Respuesta :

abiolataiwo2015

For Tanya, the total cost of opening her hair salon and staying in business for one year will be: d.$112,500.

Using this formula

Total cost=Fixed costs+ Variable costs

Where:

Fixed costs=$100,000

Variable cost=(500×$25)

Let plug in the formula

Total cost=$100,000+(500×$25)

Total cost=$100,000+$12,500

Total cost=$112,500

Inconclusion the total cost of opening her hair salon and staying in business for one year will be: d.$112,500.

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