Question
XYZ owns and operates an ice cream truck that he drives through residential neighborhoods in Bayanan to sell five different ice creams to the children.
XYZ owns and operates an ice cream truck that he drives through residential neighborhoods in Bayanan to sell five different ice creams to the children. On average XYZ sells 100 of each type of ice cream per day for the 120 days of summer per year. Four of his products are profitable, but the other, Melona, indicates a loss as follows: Selling price/unit............ $7.00 Cost of each ice cream ..... 3.20 Truck operating costs/unit...... 1.48 XYZs salary/unit............ 2.40 Administrative costs/unit....... 0.32 Loss/unit........................ $(0.40) If Melona is dropped, the effect on total profit would be:
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