The Dark Chocolate Division of Yummy Snacks,Inc

question 58

Multiple Choice

The Dark Chocolate Division of Yummy Snacks,Inc.had the following operating results last year: Dark Chocolate expects identical operating results this year.The Dark Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually.Assume that the Peanut Butter Division of Yummy Snacks wants to purchase an additional 20,000 pounds of chocolate from the Dark Chocolate Division.Assume that the Dark Chocolate Division is currently operating at its capacity of 200,000 pounds of chocolate.Also assume again that the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from Dark Chocolate.Under these conditions,what amount per pound of chocolate would Dark Chocolate have to charge Peanut Butter in order to maintain its current profit?

• A)$0.40 per pound
• B)$0.08 per pound
• C)$0.15 per pound
• D)$0.25 per pound
• E)$0.30 per pound

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