Unused portion of the building for video game rentals

Assignment Help Business Economics

Reference no: EM131195330

The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $25,000 per year. The store is located on prime real estate in a college town. World of Videos pays $2,000 per month in rent for its building, but it uses only 50 percent of the square footage rented for video rental purposes. The other portion of rented space is essentially vacant. Noticing that World of Videos only occupies a portion of the building, a real estate agent told the owner of World of Videos that she could add $1,200 per month to her firm’s profits by renting out the unused portion of the store. While the prospect of adding an additional $1,200 to World of Videos’s bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the building for video game rentals?

Reference no: EM131195330

Questions Cloud

Is it a good idea to neglect juvenile programs : Describe and explain the programs in a state of your choosing. Do they still exist? If so, what do they offer? Do these programs help children with drug problems? Do they help children with emotional issues? Do they help children who are in gangs?..

What is the probability that this ball is red : For instance, if a blue ball is picked then it is replaced by a red ball and vice-versa. The process is repeated ten times and then a ball is picked from the box. What is the probability that this ball is red?

Explain the ntsb party process : Provides a highly effective and concise overview/introduction; develops a coherent, central theme that is expressed in a well-structured, organized, and logically-consistent manner throughout.

What are the goals established by the epa and your state : What is the content of recycled fiber in the paper used by your school/college/ department? What are the goals established by the EPA and your state? (You can find this from the EPA at www.epa.gov.)

Unused portion of the building for video game rentals : The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $25,000 per year. the owner was also contemplating using the additional space to rent video ..

Identify potential physical threats that require attention : Identify at least five potential physical threats that require attention. Determine the impact of at least five potential logical threats that require attention.

Find the probability that the three resulting numbers : A fair die is tossed three times in succession. Find the probability that the three resulting numbers include at least one 3.

Discuss the trade-off of richness and reach in environment : Evan and Wurster discuss the trade-off of “richness and reach” in the environment of decreasing costs of information technology and information. How does this trade-off affect business strategies? Please present an example of a transformed business.

Is polystyrene recycled in your community : Is polystyrene recycled in your community? If it is not recycled, call the community solid waste/recycling office and ask why it is not. How would you respond to those reasons? If it is, call and ask what happens to it.

User Account

All Pages