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Business, 07.05.2020 02:07 darwin59651
Each day, Presto Pasta incurs total costs of $22,000 to process raw ingredients into spaghetti. The firm can then sell the spaghetti as is for total daily revenue of $84,000. Alternatively, Presto can partially cook the pasta, package it with tomato sauce, and sell it as an instant frozen meal. The additional costs for making the frozen meals are $50,000 per day, and total daily revenues from the meals are $139,000. Given these data, A : it cannot be determined whether Presto should sell frozen meals or plain spaghetti. B : Presto should sell the frozen meals. C : it makes no difference whether Presto sells frozen meals or plain spaghetti. D : Presto should sell the plain spaghetti.
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Each day, Presto Pasta incurs total costs of $22,000 to process raw ingredients into spaghetti. The...
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