Cassandra and Jim Can Make Either Sushi or Wine or Some

question 6

Multiple Choice

Cassandra and Jim can make either sushi or wine or some combination of both.Each have eight hours to work.In her eight hours Cassandra can make 24 sushi rolls or 8 litres of wine (or some combination, if she splits her time) .Jim can make either 16 sushi rolls or 4 litres of wine (or some combination) .If the gains from trade are to be realized:

• A)Cassandra will specialize in wine and Jim will specialize in producing sushi; the price of a litre of wine must be between 1/4 and 1/3 of a sushi roll.
• B)Cassandra will specialize in wine and Jim will specialize in producing sushi; the price of a litre of wine must be between 3 and 4 sushi rolls.
• C)Cassandra will specialize in wine and Jim will specialize in producing sushi; the price of a litre of wine must be between 1/4 and 1 sushi roll.
• D)Cassandra will specialize in sushi and Jim will specialize in producing wine; the price of a litre of wine must be between 3 and 4 sushi rolls.
• E)Cassandra will specialize in wine and Jim will specialize in producing sushi; the price of a litre of wine must be between 2 and 4 sushi rolls.

---

Definitions:

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

Reasonable Assurance

An acceptable level of certainty or confidence in the accuracy of financial statements, provided by internal controls.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses in a business.

Cash Short

A situation where the actual amount of cash on hand is less than the recorded amount in the accounting records.