The Produce Manager for a Grocery Store Needs to Decide

question 10

Multiple Choice

The produce manager for a grocery store needs to decide how many heads of lettuce to order each day. A head of lettuce sells for $1.20 and costs the grocery store $0.75. Any unsold lettuce at the end of the day is donated to charity. If the manager purchases 100 heads of lettuce for tomorrow and demand for lettuce that day is 250 heads, the profit will be ___________

• A)- $68
• B)$45
• C)$0
• D)$113

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Definitions:

Present

The current moment in time, often used as a reference point in discussions about time value of money.

Compounding

The process by which an investment generates earnings from previous earnings, leading to the exponential growth of the investment value over time.

Future Value

The value of an investment at a specific date in the future, accounting for factors such as interest rates and compounding.

Present Value

The contemporary monetary value of forthcoming sums or cash flow instances, considering a chosen rate of return.