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 figures, Select answer from the options below Presto should sell the plain spaghetti. it cannot be determined whether Presto should sell frozen meals or plain spaghetti. Presto should sell the frozen meals. it makes no difference whether Presto sells frozen meals or plain spaghetti.

Answer rating: 100% (QA)

To determine whether Presto should sell plain spaghetti or frozen meals we need to calcul... View the full answer