QuestionMay 27, 2025

If the government increases the minimum wage in Sophia's state from 12 to 15 per hour, what should Sophia do to manage her operating costs while maintaining quality service? Reduce staff hours to avoid increasing payroll expenses. Hire fewer employees and increase her own workload to save money. Raise prices to cover the increased wage costs and maintain her profit margins. Lower the quality of her ingredients to offset the higher labor costs.

If the government increases the minimum wage in Sophia's state from 12 to 15 per hour, what should Sophia do to manage her operating costs while maintaining quality service? Reduce staff hours to avoid increasing payroll expenses. Hire fewer employees and increase her own workload to save money. Raise prices to cover the increased wage costs and maintain her profit margins. Lower the quality of her ingredients to offset the higher labor costs.
If the government increases the minimum wage in Sophia's state from 12 to 15 per hour, what should Sophia do to manage her operating costs while maintaining
quality service?
Reduce staff hours to avoid increasing payroll expenses.
Hire fewer employees and increase her own workload to save money.
Raise prices to cover the increased wage costs and maintain her profit margins.
Lower the quality of her ingredients to offset the higher labor costs.

Solution
4.5(211 votes)

Answer

Raise prices to cover the increased wage costs and maintain her profit margins. Explanation 1. Analyze Options Consider the impact of each option on costs, service quality, and business sustainability. 2. Evaluate Cost Management Reducing staff hours or hiring fewer employees may affect service quality. Lowering ingredient quality can harm reputation. 3. Assess Price Adjustment Raising prices can cover increased wage costs while maintaining service quality and profit margins.

Explanation

1. Analyze Options<br /> Consider the impact of each option on costs, service quality, and business sustainability.<br /><br />2. Evaluate Cost Management<br /> Reducing staff hours or hiring fewer employees may affect service quality. Lowering ingredient quality can harm reputation.<br /><br />3. Assess Price Adjustment<br /> Raising prices can cover increased wage costs while maintaining service quality and profit margins.
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