Question

39) McDavid's Hamburgers sells only two kinds of hamburger: "The Pip-Squeak" and the "Big Dave". Last year, Mcdavid's sold 20,000 “Pip-Squeaks", selling them for $2.50 each. McDavid's sold 10,000 “Big Daves" at $5 each. It costs exactly $1 in ingredients to make a "Pip-Squeal”. It costs exactly $2 in ingredients to make a "Big Dave. McDavid's paid $20,000 rent for the store (which includes all electricity, utilities, insurance, etc.) In addition, McDavid's paid a total of $20,000 to a couple of students who worked part time, helping out on busy Friday and Saturday nights. Ronald McDavid, the owner of the restaurant, paid himself no salary, but took home all of the profits. Last year, Ronal McDavid's business earned him a profit of a) $40,000 $20,000 $60,000 loss of $10,000