The Only Grocery Store in a Small Rural Community Carries

question 2

Multiple Choice

The only grocery store in a small rural community carries two brands of frozen apple juice,a local brand that it obtains at the cost of 18 cents per can and a well-known national brand that it obtains at the cost of 40 cents per can.The grocer estimates that if the local brand is sold for x cents per can and the national brand for y cents per can,approximately 70 - 5x + 4y cans of the local brand and 80 + 6x - 7y cans of the national brand will be sold each day.How should the grocer price each brand to maximize the profit from the sale of the juice?

• A)local brand (x)at 39 cents,national brand (y)at 104 cents
• B)local brand (x)at 46 cents,national brand (y)at 52 cents
• C)local brand (x)at 44 cents,national brand (y)at 52 cents
• D)local brand (x)at 88 cents,national brand (y)at 50 cents

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Definitions:

Disclosed Principal

A principal whose identity is known by the third parties with whom the agent enters into contracts on behalf of the principal.

Mutually Agreed

A condition or circumstance where all parties involved have consented to the terms or decisions proposed, often used in contracts or negotiations.

Prospective Customers

Individuals or organizations likely to become clients or customers of a business in the future.

Real Principal

The actual entity or individual for whom an agent or representative acts, holding the ultimate authority and benefit in transactions or contracts.