William Howe must decide whether to start a business renting beach umbrellas at

Question

William Howe must decide whether to start a business renting beach umbrellas at an ocean resort during June, July, and August of next summer. He believes he can rent each umbrella to vacationers at $5 a day, and he intends to lease 50 umbrellas for the three-month period for $3,000. To operate this business, he does not have to hire anyone (but himself), and he has no expenses other than the leasing costs and a fee of $3,000 per month to rent the business location. Howe is a college student, and if he did not operate this business, he could earn $4,000 for the three-month period doing construction work.

Explanation / Answer

his net profit would be $8000 is he does this business fro those 80 days

his profit would be $4000 more than he would have had if he had gone for construction work

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