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Bert's Burritos sells a burrito and a soda combo for $5.00; variable costs are $3.10. Bert plans to sell 5,000 burrito/soda combos for the year
Bert's Burritos sells a burrito and a soda combo for $5.00; variable costs are $3.10. Bert plans to sell 5,000 burrito/soda combos for the year and has fixed costs of $1.20 per combo. Babson Field Hockey team needs 30 burrito/soda combos for a team meeting but can only pay $4.00 per combo. The order from Babson Field Hockey team will not impact Bert's current planned sales. If Bert accepts the offer, Bert's profit will:
A. Decrease by $9
B. Increase by $27
C. Increase by $120
D. Stays the same.
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