Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can sell the tortillas as is for daily revenue of $22,500. Alternatively, Tasty could fold and fry the tortillas to make hard taco shells. The additional costs for making the taco shells would be $4,200 per day, and the daily revenue from the finished shells would be $26,700. Given these data
a. the firm will make an additional $8,000 in income per day if it sells tortillas instead of taco shells.
b. the firm's income will remain unchanged whether it sells tortillas or taco shells.
c. the firm will make an additional $4,200 in income per day if it sells taco shells instead of tortillas.
d. the firm will make an additional $14,500 in income per day if it sells taco shells instead of tortillas.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can sell the tortillas as is for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
a. Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule?
Answers (1)
Which of the following statements correctly characterizes the elasticity of demand for food? a. While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food. b.
Answers (1)
The key difference between mediation and arbitration is: (A) A mediator is constrained to work with the final offers given by the parties while an arbitrator can create an agreement that lies somewhere in between final offers (B) An arbitrator has
Answers (1)
Andy Forsummer, owner of Barcelona Restaurant Group, states that many large restaurant companies create highly regulated work rules that control nearly every aspect of employee behavior in order to find the most efficient way to do a job.
Answers (1)
Which of the following is a disadvantage of a transnational strategy? Group of answer choices Less ability to realize cost savings through scale economies. Limited ability to adapt to local markets.
Answers (1)
New Questions in Business
Which of the following is NOT one of the strategies incorporated in the Sarbanes-Oxley Act of 2002? (A) Establish compliance programs (B) Establish ethics programs (C) Dictate maximum compensation levels (D) Attain greater board independence
Answers (1)
On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $86,000 in cash.
Answers (2)
Which of the following statements is true of the market introduction stage of the product life cycle?
Answers (1)
Look at the thesaurus entry that follows this sentence. which word is the best replacement for the word "expensive"? the new insurance plan was expensive - far beyond karl's ability to pay.
Answers (1)
The best way for a franchisee and franchisor to evaluate each other is for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (2)