A Merchant Has Coffee Worth $5 a Pound That She

question 236

Multiple Choice

A merchant has coffee worth $5 a pound that she wishes to mix with 70 pounds of coffee worth $8 a pound to get a mixture that can be sold for $7 a pound. How many pounds of the $5 coffee
Should be used?

• A)52.5 lb
• B)17.5 lb
• C)35 lb
• D)105 lb

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses, leading to the total profit or loss over a specific period.

Par Stock

The ideal stock level that a business aims to maintain to fulfill customer orders without overstocking.

Stock Split

A reduction in the par or stated value of a common stock and the issuance of a proportionate number of additional shares.

Appropriation of Retained Earnings

The process of allocating retained earnings to specific purposes, such as reserves or dividend distribution.