The wholesale price for Captain John’s is $1.00 per loaf,

The wholesale price for Captain John’s is $1.00 per loaf, and the variable cost of production is $0.50 per loaf. Captain John’s is expecting that expansion will allow them to sell an additional 5.0 million loaves in the next year. What additional revenues minus expenses will be generated from expansion? 
A. $25,000
B. $250,000
C. $550,000
D. none of these

 

Solution