Vipsana's Gyros House Sells Gyros

question 90

Multiple Choice

Vipsana's Gyros House sells gyros.The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.Calculate Vipsana's total cost per day when she produces 50 gyros using two workers?

• A)$100
• B)$124.40
• C)$220
• D)$340

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Definitions:

Coupon Rate

The interest rate paid yearly on a bond, represented as a percentage of its par value.

Zero Coupon

A bond or debt security that does not pay interest (a coupon) but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment cost.

Original Maturity

The fixed term length at the issuance of a bond or other fixed-income security until it reaches its due date for the repayment of the principal.