Casey Earns $150 a Week and Consumes Only Fish and Shrimp

question 129

Multiple Choice

Casey earns $150 a week and consumes only fish and shrimp. The price of fish is $3 a pound and the price of shrimp is $5 a pound. If Casey's income rises to $210, he could buy a maximum of ________ pounds of fish or a maximum of ________ pounds of shrimp.

• A)30; 24
• B)24; 30
• C)70; 42
• D)42; 70

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Definitions:

Mutually Exclusive Projects

Projects that, if accepted, preclude the acceptance of any other projects within the same category.

Managerial Decision

The process by which managers choose among alternative strategies or actions to solve organizational problems or to take advantage of opportunities.

NPV

Net Present Value, a method used in capital budgeting to determine the profitability of an investment or project by calculating the present value of expected cash flows versus initial cost.

Independent Projects

Investment opportunities that do not affect the cash flows or profitability of other projects considered by an entity.