A Baker Wants to Establish a Pie Factory

question 60

Multiple Choice

A baker wants to establish a pie factory. The cost of leasing the factory is $1,000 per day. The profit maximizing quantity of pies is 1,000 pies a day. Each pie sells for $3 and costs only $2.10 to make. Which of the following is a correct conclusion based on this data?

• A) The baker will enjoy profits of $900 per day.
• B) The baker should not enter the industry.
• C) At the profit-maximizing quantity, the baker's producer surplus is -$200.
• D) The baker will enjoy profits of $3,000 per day.

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Definitions:

Sales Call Objective

The specific goal or purpose a salesperson aims to achieve during a sales call, such as introducing a new product, gathering customer feedback, or closing a sale.

Prospect

A prospective client or customer who shows interest in a company's offerings.

Sales Profile

A detailed description of the characteristics, skills, and behaviors of successful salespeople in a particular industry or company.

Sales Call

A communication or visit made by a sales representative to a potential or existing customer with the aim of selling products or services.