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Young's Ice Cream Co. sells plain vanilla ice cream cones at the beach during summer for $1.50 each. The company has 50,000 total ice cream
Young's Ice Cream Co. sells plain vanilla ice cream cones at the beach during summer for $1.50 each. The company has 50,000 total ice cream cones budgeted for summer. Each gallon of ice cream makes 20 ice cream cones. The cost of each gallon of ice cream is $22. Young's is considering whether it should buy a chocolate dipper so it can sell chocolate dipped cones for $2.00 each. It estimates it will sell 10,000 chocolate-dipped cones in addition to 40,000 plain vanilla cones if the change is made. The cost per cone of the chocolate dipping would be $0.40. How much is the incremental effect on profit if the company sells chocolate dipped cones? O A. Increase of profit by $5,000. O B. Increase of profit of $16,000. OC. Decrease of profit of $6,000. OD. Increase of profit by $1,000
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