Answer: C
Wellspring should produce flavored water both this week and next.
Explanation: Given that
The total costs to filter natural spring water = $38500
With Weekly revenue for plain water = $92,700
Gain = 92700 - 38500 = $54200
While
The cost of flavorings bottling = $38500 + $4600 = $43100
With Weekly revenue for the flavored water = $100,800
Gain = 100800 - 43100 = $57700
If the cost of filtering the spring water will decrease by $1,000 in the week ahead, then
Normal water gain = $44100
but the cost of flavorings will increase by $1,200.
Flavour water gain = 57700 - 1200
Flavour water gain = $56500
Since flavour water gain is more than normal water, we will conclude that Wellspring should produce flavored water both this week and next.
