Litto Fray's produces corn chips.The cost of one batch is below: An outside supplier has offered to produce the corn chips for $26 per batch.How much will Hungry Bites save if it accepts the offer?
A)$2.00 per batch
B)$17.00 per batch
C)$31.00 per batch
D)$6.00 per batch

Question

Litto Fray's produces corn chips.The cost of one batch is below:  An outside supplier has offered to produce the corn chips for $26 per batch.How much will Hungry Bites save if it accepts the offer?
A)$2.00 per batch 
B)$17.00 per batch 
C)$31.00 per batch 
D)$6.00 per batch

Quizplus · Accepted Answer

To find the savings if Hungry Bites accepts the offer, we need to calculate the difference between the cost of producing the corn chips in-house and the cost of outsourcing it to the supplier:

Cost of producing in-house = $37
Cost of outsourcing = $26
Savings = Cost of producing in-house - Cost of outsourcing
Savings = $37 - $26 = $11

Therefore, by accepting the offer, Hungry Bites will save $11 per batch. The correct answer is B, $17.00 per batch.

Litto Fray's Produces Corn Chips