The Owner of a Greenhouse and Nursery Is Considering Whether

question 42

Multiple Choice

The owner of a greenhouse and nursery is considering whether to spend $12,000 to acquire the licensing rights to grow a new variety of rose bush,which she could then sell for $8 each.Variable costs would be $5 per rosebush. If her available land has design and effective capacities of 3,000 and 2,000 rose bushes per year,respectively,and she expects to be 80% efficient in her use of this land,how many rosebushes does Rose plan to grow each year on this land?

• A)1,600
• B)2,400
• C)3,000
• D)2,000
• E)1,000

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Definitions:

Month End Inventory

Describes the total value of all inventory held by a business at the end of a month, used for accounting and reporting purposes.

Pairs Of Skis

Two skiing boards used for the sport of skiing, sold or used together as a set.

Goodyear

A multinational company known for its tire and rubber products.

Inventory

The complete inventory of products and materials in possession of a business, intended either for production or for selling.