Ronald's Refrigeration Repair Located in Tampa,Florida Provides Service to Restaurant

Ronald's Refrigeration Repair located in Tampa,Florida provides service to restaurant customers.He has always had the policy of letting his employees have 6 holidays off each year (New Year's Day,Memorial Day,July 4th,Labor Day,Thanksgiving,and Christmas).However,he has also discovered that these are the days when restaurants seem to be the busiest and have refrigeration breakdowns.As a result he is considering paying an emergency skeletal crew time and a half overtime rather than giving them the days off.
Ronald estimates that if he does this,he can generate $5,000 revenue for each of these 6 days.The incremental cost for 2 repair personnel will be $60 per hour for 8 hours per day plus daily costs of: $500 for parts,$300 for transportation costs,and $200 for dispatcher staff.These costs do not include a share of monthly rent or depreciation related to equipment.
Although Ronald would like to maintain his current holidays off policy,he would like to know the opportunity cost of this.Present Ronald with an estimate of the opportunity cost and explain whey you do not have to consider rent or depreciation in the estimate.

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Revenue per day $ 5,000
Less incremental...

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