The Produce Manager for a Grocery Store Needs to Decide

question 88

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 250 heads of lettuce for tomorrow and demand for lettuce that day is 400 heads, the profit will be ________.

• A)- $68.25
• B)$45.00
• C)$0
• D)$112.50

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Definitions:

Liquidity Ratios

Financial metrics used to determine an entity's ability to pay off its short-term debts obligations.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Solvency Ratios

Financial ratios used to assess a company's ability to meet its long-term debts and obligations, indicating financial health and stability.

Liquidity Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.