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Question 11
Amaya is a gardener. She charges £15 per hour. Her fixed costs are £18000 per annum. Her variable costs are £2 per hour. How many hours of gardening will Amaya need... show full transcript
Step 1
Answer
To determine how many hours of gardening Amaya needs to do to start making a profit, we first need to calculate her total costs, which consist of fixed costs and variable costs per hour.
Let:
The Total Cost (TC) can be defined as:
Thus,
Step 2
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