Question
An icecream guy sells the icecream cone for $ 3.00. Generally, the icecream guy sells 250 ice cream cones per day, but has the capacity
An icecream guy sells the icecream cone for $ 3.00. Generally, the icecream guy sells 250 ice cream cones per day, but has the capacity to sell up to 400. The variable cost per unit is estimated at $ 0.10 per cone and $ 150 fixed cost per day for that level of activity. A group of cyclists asks the ice cream seller to sell 50 ice cream cones at the price of $ 1.00 on each bicycle. If the guy accepts the offer, what would be the effect on net income? Select one: a.Increase by $ 37.50. b.Increase by $ 45.00. c.Decrease by $ 100.00. d.It would not change.
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