Business, 04.11.2021 02:00 hbantzstudent
Each week, Wilson Water incurs total costs of $56,500 to filter natural spring water. The firm can then bottle the water as is, or it can spend $8,000 to carbonate the water prior to bottling. Daily revenues for the plain water are $144,000 while those for the carbonated water are $150,000. If Wilson is currently selling plain water and wants to continue doing so next week, which of the following changes would it LEAST want to see in the week ahead?
a. A $2,000 increase in the cost of filtering the spring water accompanied by a $1,600 decrease in the cost of carbonating the water.
b. A $1,500 increase in the cost of filtering the spring water accompanied by a $1,000 decrease in the cost of carbonating the water.
c. A $3.000 decrease in the cost of carbonating the water.
d. A $2,500 decrease in the cost of carbonating the water
Answers: 3
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Each week, Wilson Water incurs total costs of $56,500 to filter natural spring water. The firm can t...
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