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27) A piragero sells the pirogue cone for $3.00. Generally, the piragero sells 250 canoes per day, but has the capacity to sell up to
27) A piragero sells the pirogue cone for $3.00. Generally, the piragero sells 250 canoes per day, but has the capacity to sell up to 400. The variable cost per unit is estimated at $0.10 per cone and $0.15 fixed cost per unit for that level of activity. A group of cyclists asks the canoe seller to sell 50 cones at a price of $1.00 in each bike ride. If the piragero accepts the offer, what would be the effect on net income? a. It would not change. b. Decreases by $100.00. c. Increase by $37.50. d. Increase by $45.00.
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