Francesca would like to lease a coffee cart in Aspen, Colorado. The lease is $800 per month and a city license to sell food and beverages cost $20 per month. The lesser of the stand has shown Francesca records indicating that gross revenues average $32 per hour. The out-of-pocket costs for ingredients are generally about 40% of gross revenues. Last year she paid 25% of her income in federal taxes.
Francsca pays $1,000 per month for her condominium. She could store the cart overnight in the condo’s garage which is currently unused. Real estate developers in Aspen estimate that about 20% of the cost of a residential building is for the garage.
List each piece of quantitative information in this problem. For each item, indicate whether it is relevant to Francesca’s decision and explain how.
If Francesca leases the cart and works 30 days in a month, how many hours will she have to work each day, on average, to be at least as well off financially as she is in her current job?
Francsca pays $1,000 per month for her condominium. She could store the cart overnight in the condo’s garage which is currently unused. Real estate developers in Aspen estimate that about 20% of the cost of a residential building is for the garage.
List each piece of quantitative information in this problem. For each item, indicate whether it is relevant to Francesca’s decision and explain how.
If Francesca leases the cart and works 30 days in a month, how many hours will she have to work each day, on average, to be at least as well off financially as she is in her current job?
