Each day, Castle Rock Baking Company incurs total costs of $8,000 to process flour into sourdough bread. The company can then sell the bread as is for total daily revenue of $23,500. Alternatively, Tasty can cube and dry the bread to make croutons. The additional costs for making the croutons are $3,200 per day, and the total daily revenues from the finished croutons are $25,700. Given these figures:

A. The firm should sell as bread because the revenue is $2,200 higher.

B. The firm should process further because the revenue is $2,200 higher when they make croutons.

C. The firm’s income will remain unchanged whether it sells bread or croutons.

D. The firm should sell the bread because the incremental profit is $1,000 higher.

Answer rating: 100% (QA)

fitf firmon Salend beead Y Daily Revenue rom Sale of Breoda Teta... View the full answer