A Bagel Shop Sells Fresh Baked Bagels from 5 A Until

question 431

Multiple Choice

A bagel shop sells fresh baked bagels from 5 a.m. until 7 p.m. every day. The shop does not sell day-old bagels, so all unsold bagels are thrown away at 7 p.m. each day. The cost of making and selling a dozen bagels is $1.00; there are no costs associated with throwing bagels away. If the manager has 8 dozen bagels left at 6:30 p.m. on a particular day, which of the following alternatives is most attractive?

• A)Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen.
• B)Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen.
• C)Throw the bagels away and produce 8 fewer dozen bagels tomorrow.
• D)Starting tomorrow, lower the price on all bagels so they will all be sold earlier in the day.

Comprehend the significance of maintaining a balance between dividend payments and funding for positive net present value projects.

Recognize the role of financial engineering in creating homemade dividends.

Understand the concept and impact of reverse stock splits and their strategic use by firms.

Understand the different types of sales promotions and their purposes.

---

Definitions:

Personality Traits

Enduring characteristics or qualities of an individual’s behavior, thought, and emotion that are consistent across different situations.

Behavioural Characteristics

Traits or actions of an individual that identify and distinguish their behavior.

Psychological Contract

An unwritten agreement between an employer and an employee that outlines mutual expectations, obligations, and perceptions.

Inducements

Incentives or rewards offered to motivate or encourage specific actions or behaviors.