Stefan estimates the income and expenses for renting a phone accessory store in the mall. He enters the
amounts in the table below. Should Stefan
rent a phone accessory store? Explain.

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.

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