A Local Vendor at the County Fair Sells Snow Cones

question 36

Multiple Choice

A local vendor at the county fair sells snow cones for $3 each.When 250 snow cones are sold,each snow cone is estimated to have $.10 in variable costs and $.15 in fixed costs.A local school group plans on attending the fair next week and wishes to purchase 50 snow cones for $.25 each.The vendor can sell as many as 400 snow cones per day.If the special order were accepted,net income would:

• A) not change.
• B) decrease by $137.50.
• C) increase by $12.50.
• D) increase by $7.50.

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Definitions:

Dissolution

The legal process of ending the existence of a legal entity or agreement, such as a corporation or marriage.

Continuation Agreement

An agreement to extend the terms of a contract or arrangement beyond its original expiration date, often with some modifications.

Partnership Agreement

A contract between partners in a business that outlines the terms of the partnership, including contributions, management, and profit distribution.

Noncontinuing Partner

A member of a partnership who decides to leave, dissolve their interest, or is otherwise no longer part of the ongoing business.