Table 44
Mr -Using the Information in Table 4

question 7

Multiple Choice

Table 4.4
Mr. Lee is considering a capacity expansion for his supermarket. The annual sales projected for the next five years follow. The current capacity is equivalent to $300,000 sales. Assume a 20 percent pretax profit margin.
$$\begin{array} { | c | c | } \hline \text { Year } & \begin{array} { c } \text { Annual Sales } \\( \$ 000 ) \end{array} \\\hline 1 & 310 \\2 & 320 \\3 & 340 \\4 & 370 \\5 & 400 \\\hline\end{array}$$
-Using the information in Table 4.4,if Lee expands the capacity to an equivalent of $360,000 sales now (year 0) ,how much would pretax cash flow in year 5 increase because of this expansion?

• A) less than $7000
• B) more than $7000 but less than $10,000
• C) more than $10,000 but less than $13,000
• D) more than $13,000

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Definitions:

Biologically Primed

Innately equipped or predisposed by biology to learn certain behaviors or develop certain physical or psychological traits.

Associate Sickness

The process by which individuals link certain stimuli or experiences with feeling ill.

Tastes

Preferences or perceptions of flavor experienced through the sense of taste.

Reinforcement

In behavioral psychology, it is a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.