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Pat's Deli Makes Onion Buns That Cost

question 52

Multiple Choice

Pat's Deli makes onion buns that cost $.48 each. 10 percent of the onion buns will spoil and be thrown away. Pat wants a 40 percent markup based on cost. Pat produces 800 onion buns. Each onion bun should sell for:

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Definitions:

Economic Profit

The total revenue of a business minus its total costs, including both explicit and implicit costs.

Average Variable Cost

The total variable cost divided by the total output, indicating the variable cost for producing one more unit of a good or service.

Economic Profit

A measure of profitability that accounts for the full opportunity costs of all resources employed, including both tangible and intangible costs.

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