Willa and Westley are siblings who built a hair salon business from the ground up. They are now contemplating opening an additional salon location. The estimate to open an additional salon would mean adding $1 milion in expenses with their profit increasing by $400,000 each year for the next 5 years (all other things equal), Willa and Westley decide

A. to open a second salon because the marginal cost of the new salon is low compared to other simlar projects

B. to not open a new salon because the marginal costs prove to be too high

C. to take on the new salon because the expected marginal benetit ($2 mlton over 5 years)

The correct option is C

Explanation:

The annual profit increase = $400,000

The following formula is to be used in order to calculate the total profit enhancement in five years

The total profit increase in 5 years = 400000 multiply with 5 = $2,000,000 = $2 million , As compared to cost of $1 million.

Thus, The correct option is answer (C) To take on the new salon because the expected marginal benefit ($2 million over 5-years) is greater than the estimated marginal cost ($1 million).

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.