Ask Question
28 March, 14:23

Publix has 2,700 pounds of bananas with a total cost of $864. Because the bananas have become too ripe, Publix is contemplating whether it should use the bananas to bake banana bread or sell the bananas 'as is' to the homeless center for $1,485. In addition to the cost of the bananas, it would cost $2,565 to convert the bananas into bread, which could then be sold for a total of $4,480. However, a special oven to bake the bread will have to be rented for an additional $300. What is the incremental effect on income if Publix converts the bananas to banana bread?

+1
Answers (1)
  1. 28 March, 18:19
    0
    Answer: an increment in profit $1615

    Explanation:

    2700 pounds of Banana

    Total cost = $864

    If sold = $1485

    When converted into bread $2565 and sold at the cost of $4480

    Oven rentage = $300

    What is the incremental effect on income if Publix converts the bananas to banana bread?

    Sales Amount - Expenses incurred

    = $4480 - $2565 + $300

    = $4480 - $2865

    = $1615

    If he had sold the bananas

    Sales amount - cost amount

    = $1485 - $864

    = $621

    By converting the bananas to bread the incremental effect on income is it would yield more profits at $1615 compared to when sold at which is $621
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Publix has 2,700 pounds of bananas with a total cost of $864. Because the bananas have become too ripe, Publix is contemplating whether it ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers