Question

Bird Brain Ranch had a contract to deliver 750 ostrich eggs to the Mad Batter Bakery each month at a price of $10 per egg to be paid at the time of delivery. This month, they delivered 700 eggs. To get 50 more eggs, the bakery would have to use another supplier that charges $20 per egg. How much money does the Madd Batter need to pay Bird Brain Ranch?

Answer 1

$7,000

Step-by-step explanation:

Total contracted eggs of Bird Brain Ranch by Mad Batter Bakery - 750 eggs

Price per egg as per the contract - $10

Total eggs supplied = 700 eggs

Therefore, realisable contract value of Bird Brain Ranch = 700 eggs x 10 per egg = $7,000

Therefore Mad Batter Bakery has to pay $7,000 to Bird Brain ranch as per the contract obligation.

Answer 2

Therefore Mad Batter Bakery has to pay $7,000 to Bird Brain ranch to fullfill the contract obligation.

Step-by-step explanation:

Total contracted eggs of Bird Brain Ranch by Mad Batter Bakery - 750 eggs

Price per egg as per the contract - $10

Total eggs supplied = 700 eggs

Therefore, realisable contract value of Bird Brain Ranch = 700 eggs x 10 per egg = $7,000