Betty is in the process of opening her own business – a coffee shop in downtown Fargo, North Dakota. With the Grand Opening a month away, she runs the numbers involved in her upfront expenses: $5,400 for local advertising, $2,700 for the security deposit and first month’s rent, $390 for a business license, and $17,200 for a down payment on equipment and furniture. As an incentive to create new businesses in its downtown area, the city of Fargo will waive half of the cost of Betty’s business license.
Cost = Total expense/2.
To calculate the amount of money the city of Fargo will waive for Betty's business license, we need to find half of the cost of the license.
The cost of the business license is given as $390.
To find half of this cost, we divide it by 2:
$390 / 2 = $195
Therefore, the city of Fargo will waive $195 for Betty's business license.
Now we can calculate the total upfront expenses for Betty's coffee shop:
Local advertising: $5,400
Security deposit and first month's rent: $2,700
Business license (after waiver): $390 - $195 = $195
Down payment on equipment and furniture: $17,200
Total upfront expenses = $5,400 + $2,700 + $195 + $17,200 = $25,495
Therefore, the total upfront expenses for Betty's coffee shop is $25,495.