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1. A college student is contemplating the following options for her 3-month summ

ID: 2455418 • Letter: 1

Question

1.

A college student is contemplating the following options for her 3-month summer break:

(1) Take a summer course which will cost $800 and work half-time making $1,500 per month.

(2) Work full time at the local dinner making $3,000 per month.

(3) Take the summer class at a cost of $800 and not work during the summer.

Amanda’s incremental profit or loss if she chooses option 1 over option 2 would be:

A)

($4,100)

B)

($2,500)

C)

($5,300)

D)

($3,700)

1.

A college student is contemplating the following options for her 3-month summer break:

(1) Take a summer course which will cost $800 and work half-time making $1,500 per month.

(2) Work full time at the local dinner making $3,000 per month.

(3) Take the summer class at a cost of $800 and not work during the summer.

Amanda’s incremental profit or loss if she chooses option 1 over option 2 would be:

A)

($4,100)

B)

($2,500)

C)

($5,300)

D)

($3,700)

Explanation / Answer

1) Earning in option 1 = ( 1500*3) - 800 i.e 3700

2) Earning in option 2 = 3000*3 i.e 9000

Amandas incremental profit = 9000-3700 i.e 5300