A Nike women's-only store in California offers women's running, training, and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of $468,000 per year and is located on prime real estate in the center of town. The store owner pays $12,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add $6,000 per month to her firm's profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store's profits. What is the opportunity cost of continuing to operate the fitness studio within the store?

The opportunity Cost is $72,000

but reviewing the impact the studio has on the store sales will give better deep dive in concluding this decision.

Explanation:

Opportunity cost is income foregone at the expense of a decision taken

In this case, it easy to see the foregone decision is "not renting" out the space used for the fitness studio

The income this would have generated is $6,000 x 12 months = $72,000

However, the question doesn't provide for us how much of an influence the fitness studio has on the sports store. In other words, if the % of the Studio users contribute a significant amount in Sales from the store, then closing down the studio would not make the $468,000 profit realizable in the coming years.

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!

answer; consideration;