Mamma Temte Bakes Six Pies Each Day at a Cost

question 18

Multiple Choice

Mamma Temte bakes six pies each day at a cost of $2 each. On 39% of the days she sells only two pies. On 38% of the days, she sells 4 pies, and on the remaining 23% of the days, she sells all six pies. If Mama Temte sells her pies for $4 each, what is her expected profit for a day's worth of pies? [Assume that any leftover pies are given away.]

• A) $2.72
• B) $14.72
• C) -$8.00
• D) -$8.32

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Definitions:

Non-current Assets

Assets that are intended for use over a long-term period, usually more than one year, such as property, plant, and equipment.

AASB 12/IFRS 12

Refers to the disclosure of interests in other entities, providing requirements on the disclosure of interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities.

Unrecognised Share of Losses

Losses attributable to an investor’s share in an investee that are not reflected in the investor’s financial statements because they exceed the investor's interest in the investee’s equity.

Discontinued Use

Refers to the cessation of operations or production of a segment or unit within a business.