Pamela's Bakery Produces 500 Loaves of Bread in a Given

question 69

Multiple Choice

Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast,pays $600 in wages,pays $50 in interest on an existing loan,and pays $100 in taxes to the government. One of Pamela's bread slicing machines,which cost $75 each,wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread,therefore,sells for

• A) $0.50 per loaf.
• B) $1.00 per loaf.
• C) $2.00 per loaf.
• D) cannot tell, insufficient information

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