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olasank [31]
3 years ago
11

In the lesson, you learned about Dave and his bakery. It was mentioned that “in one hour of work, Dave can make either 60 donuts

or 30 bagels.” Which might help Dave assess whether he should focus on bagels or donuts?
a. It costs less to make bagels.
b. Customers prefer donuts.
c. Dave charges more for bagels.
d. Donuts cost more to produce
Business
1 answer:
MAXImum [283]3 years ago
5 0
B. customers prefer donuts.
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2 years ago
Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration.
ivolga24 [154]

Answer:

differential revenue = $7

so correct option is a.$7

Explanation:

given data

Product A costs = $6

contribution margin = $3

Product B costs = $12

contribution margin = $4

to find out

the differential revenue for this decision

solution

we get here the differential revenue for this decision that is express

so first we get here selling price for both product that is

selling price product A = Product A costs + contribution margin

selling price product A  = $6 + $3 = $9

and

selling price product B   = $12 + $4 = $16

so now we get differential revenue that is

differential revenue = selling price product B - selling price product A

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so correct option is a.$7

4 0
3 years ago
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