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Karo-lina-s [1.5K]
3 years ago
11

Assume that a college student spends her income on Coke and Snickers. During finals week, the price of a Snickers candy bar is $

0.75, and a can of Coke is $1.25. If she has $32.50 of income, she could choose to consume 24 Snickers bars and 12 cans of Coke. 22 Snickers bars and 14 cans of Coke. 15 Snickers bars and 18 cans of Coke. 10 Snickers bars and 20 cans of Coke.
Business
1 answer:
Ratling [72]3 years ago
8 0

Answer:

The answer is: 10 Snickers bars and 20 cans of Coke.

Explanation:

To find out what combination she can buy with her total income ($32.50) we can just multiply the price of each product by its quantity;

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (24 x $0.75) + (12 x $1.25) = $33     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (22 x $0.75) + (14 x $1.25) = $34     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (15 x $0.75) + (18 x $1.25) = $33.75     SHE CAN´T AFFORD TO BUY

  • If she buys 24 snickers bars and 12 cans of coke she will spend:

        (10 x $0.75) + (20 x $1.25) = $32.50    <u> </u><u>SHE CAN AFFORD TO BUY</u>

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Answer and Explanation:

The preparation of the income statement is presented below:

                                     Equinox Products Inc.

                                        Income Statement

                     For the Year Ended December 31, 20Y8

Sales                                                                                    $5,313,000

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