The wholesale price for Captain John’s is $1.00 per loaf, - 535

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Price: $1.25
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  • Posted on: Thu 01 Mar, 2012
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Request Description

The wholesale price for Captain John’s is $1.00 per loaf, and the variable cost of production is $0.50 per loaf. Captain John’s is expecting that expansion will allow them to sell an additional 5.0 million loaves in the next year. What additional revenues minus expenses will be generated from expansion?

A. $25,000

B. $250,000

C. $550,000

D. none of these

 

 

Solution Description

The wholesale price for Captain John’s is $1.00 per loaf, and the variable cost of produc