Multiple Choice
Jebb's Lettuce Stand currently sells 60,000 heads of lettuce each year for $1.00 per head. Jebb is thinking of expanding operations and serving the customer better by purchasing a "slice and dice" machine that will cut up each head of lettuce into bite-size pieces that can be used for salads. Jebb expects he will then be able to sell his lettuce for $1.70 per head. Jebb has prepared the following analysis for each option based on sales of 60,000 heads of lettuce:
-Based on the information above, what will be Jebb's increase or decrease in profit for the year if he chooses to start slicing up the lettuce instead of selling it whole?
A) $3,000 increase
B) $3,000 decrease
C) $12,000 decrease
D) $30,000 increase
Correct Answer:

Verified
Correct Answer:
Verified
Q138: Fahringer Corporation makes three products that use
Q139: Zuppa Corporation currently maintains its own printing
Q140: The Molis Corporation has the capacity to
Q141: Rama Corporation is presently making part J56
Q142: The Milham Corporation has two divisions-East and
Q144: The constraint at Johngrass Corporation is time
Q145: Mankus Inc. is considering using stocks of
Q146: One way to increase the effective utilization
Q147: Kampmann Corporation is presently making part Z95
Q148: A customer has requested that Gamba Corporation