Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maria lorenzi owns an ice cream stand she operates

Maria Lorenzi owns an ice cream stand she operates during the summer months in West...

60.1K

Verified Solution

Question

Accounting

Maria Lorenzi owns an ice cream stand she operates during the summer months in West Yellowstone, Montana. She is unsure how to
price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of
people who entered the store was roughly the same each week. During the first week, she priced the cones at $3.80 and 1,910 cones
were sold. During the second week, she priced the cones at $4.30 and 1,500 cones were sold. The variable cost of a cone is $.50 and
consists solely of the costs of the ice cream and the cone itself. The fixed expenses of the ice cream stand are $2,005 per week.
Required:
What profit did Maria earn during the first week when her price was $3.80?
At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease?
Note: Round your percentage answers to 2 decimal place.
What profit did Maria earn during the second week when her price was $4.30?
What was Maria's increase (decrease) in profits from the first week to the second week?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

Assume that a simple random sample has been selected and test the given claim. Identify the...

Psychology
1.2K views

The purpose of Lorraine’s message is to _______________________________________ (build goodwill with her employees to maintain morale, persuade...

Physics
1.2K views

Q 134 A radio isotope X with a half life 1 4 x 10 years...

Geometry
1.2K views

3 On Sunday Tiana runs on a straight path to the park located at 8...

Basic Math
1.2K views

Consider a student loan of $25,000 at a fixed APR of 9% for 20 years.a....

Statistics
1.2K views

A security expert claims that more than 18 of all homeowners have a home security...

Algebra
1.2K views

A sinusoid reaches a maximum value of (?/2,28 )and a minimum value of (?,12)during a...

Accounting
1.2K views

The following information pertains to the three product lines for next year: What...

Accounting
1.2K views

Question 6(55 marks) Delta Construction Limited tendered for a job to build a Conference Room...

Accounting
1.2K views

Recent financial statements for Madison Company follow: ...

Accounting
1.2K views

What do you understand by coporate profits?

Finance
1.2K views

You invest $2,700 in a savings account that pays 2.4% interest per year. How much...