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Hitz Video Rental Is Evaluating Rental Prices The Store Manager Wants to Charge More for Rentals on Friday

Question 185

Multiple Choice

Hitz Video Rental is evaluating rental prices.Historical data show that Friday and Saturday have twice the rentals of other days of the week.The following information pertains to the store's normal operations per week:  Average rentals per day on Friday and Saturday 1,150 Average rentals per day on Sunday through Thursday 500 Store hours per day 12 Total units available for rent 10,000 Variable operating costs per hour $40 Marketing costs per week $1,500 Customer service costs per week $250\begin{array}{lr}\text { Average rentals per day on Friday and Saturday } & 1,150 \\\text { Average rentals per day on Sunday through Thursday } & 500 \\\text { Store hours per day } & 12 \\\text { Total units available for rent } & 10,000\\\\\text { Variable operating costs per hour } & \$ 40 \\\text { Marketing costs per week } & \$ 1,500 \\\text { Customer service costs per week } & \$ 250\end{array} The store manager wants to charge more for rentals on Friday and Saturday.What is the minimum price that should be charged during peak rental days?


A) $0.60
B) $0.83
C) $0.90
D) $1.07

Correct Answer:

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