Buttercrumbs Bakery Expects to Sell 1 Million Scones Next Year

question 24

Multiple Choice

Buttercrumbs Bakery expects to sell 1 million scones next year for $1.25 each.The variable cost of a scone is $0.75.Fixed costs are $150,000, depreciation $200,000 and the tax rate is 25%.If the bakery can increase the price of a scone to $1.50 and all other variables remain the same, free cash flow will increase by [blank].

• A)$37,500
• B)$150,000
• C)$187,500
• D)$250,000

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Definitions:

Contaminated Sharps

Medical tools such as needles or scalpel blades that have come into contact with potentially infectious materials.

Biohazardous Waste Container

A container designed specifically for collecting and disposing of materials that are contaminated with biological agents that could pose a health risk.

Dispose

To get rid of or throw away something that is no longer useful or desirable.

Aseptic Procedure

Techniques used during medical and surgical procedures designed to prevent microbial contamination, maintaining a sterile environment.