Refer to Scenario 9

question 177

Multiple Choice

Refer to Scenario 9.8 below to answer the question(s) that follow.
SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly) . Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.
-Refer to Scenario 9.8. Economic profit per week is

• A) -$400.
• B) $0.
• C) $600.
• D) $900.

---

Definitions:

Mumps

A viral infection characterized by swelling of the salivary glands, fever, and headache, primarily affecting children.

Incomplete Protein

A type of protein that lacks one or more of the essential amino acids needed by the human body.

Amino Acids

Organic compounds that serve as the building blocks of proteins, necessary for numerous functions in living organisms.

Complete Sources

Typically refers to foods or nutrients that provide all essential components necessary for a healthy diet or biological function.