Refer to Scenario 9

question 71

Multiple Choice

Refer to Scenario 9.4 below to answer the question(s) that follow.
SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week) . The deli is open 52 weeks per year.
-Refer to Scenario 9.4. Suppose the average price per sandwich is $5.50. What is the annual profit of the deli?

• A) -$22,000
• B) $78,000
• C) $130,000
• D) $244,000

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Definitions:

Free Exercise

A legal principle that guarantees individuals the right to practice their religion freely, as protected by the First Amendment of the U.S. Constitution.

Enlightenment

Revolution in thought in the eighteenth century that emphasized reason and science over the authority of traditional religion.

Rationalism

A belief or theory that opinions and actions should be based on reason and knowledge rather than on religious belief or emotional response.

Skepticism

The attitude of doubting the truth of something, such as claims, statements, or beliefs, often requiring evidence or justification.