Todd used to run a newsstand, but he's out of the business now. Todd started by selling localnewspapers on a street corner. In the winter he got cold, so he paid the city a fee of $500 for theright to build a 4' by 8' enclosed wooden newsstand on a busy corner. Soon he decided to sellmagazines, chewing gum, and candy bars too. He began to stock foreignlanguage newspapersand paperback romance novels. Then he added hot pretzels and candy apples. When he tried tosupply cut flowers, he had gone too far. The costs of his entire inventory could not be coveredby his sales. He couldn't pay his bills and went out of business. Answer the following questionsabout Todd's experiences.18. When he started his business, were most of Todd's costs fixed or variable? As he sold moreitems, were most of his costs fixed or variable? 5 619. How might Todd have benefited from offering a few more products than just local.newspapers?20. Why was it a mistake for Todd to continue to expand the number of products he offered?21. What should Todd have done before he offered each new product22. What could Todd have done to prevent his business from failing?

18. According to the paragraph above, When Todd started his business, most of his costs were fixed.…

d used to run a newsstand, but he's out of the business now. Todd started by selling local wspapers on a street corner. In the winter he got cold, so he paid the city a fee of $500 for the ht to build a 4' by 8' enclosed wooden newsstand on a busy corner. Soon he decided to sell agazines, chewing gum, and candy bars too. He began to stock foreignlanguage newspapers d paperback romance novels. Then he added hot pretzels and candy apples. When he tried to pply cut flowers, he had gone too far. The costs of his entire inventory could not be covered - his sales. He couldn't pay his bills and went out of business. Answer the following questions pout Todd's experiences. B. When he started his business, were most of Todd's costs fixed or variable? As he sold more ems, were most of his costs fixed or variable?

d used to run a newsstand, but he's out of the business now. Todd started by selling local wspapers on a street corner. In the winter he got cold, so he paid the city a fee of $500 for the ht to build a 4' by 8' enclosed wooden newsstand on a busy corner. Soon he decided to sell agazines, chewing gum, and candy bars too. He began to stock foreignlanguage newspapers d paperback romance novels. Then he added hot pretzels and candy apples. When he tried to pply cut flowers, he had gone too far. The costs of his entire inventory could not be covered - his sales. He couldn't pay his bills and went out of business. Answer the following questions pout Todd's experiences. B. When he started his business, were most of Todd's costs fixed or variable? As he sold more ems, were most of his costs fixed or variable?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter15: Contracting, Governance, And Organizational Form

Section: Chapter Questions

Problem 1.1CE

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