The Produce Manager for a Grocery Store Needs to Decide

question 79

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

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

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Definitions:

Operating Activities

Activities directly related to the daily business operations, including cash inflows and outflows from selling products and services.

Merchandise

Merchandise refers to goods or products that are purchased for resale by retail or wholesale traders, forming the primary inventory in their business operations.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Accumulated Depreciation

Accumulated depreciation represents the total depreciation expense that has been recorded against a fixed asset from the time it was acquired until the present day.