Toxemia salsa company manufactures five flavors of salsa. last year, toxemia generated net operating income of $40,000. the following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount): wimpy mild medium hot atomiccontribution margin $(2000) $45,000 $35,000 $50,000 $162,000segment margin $(16,000) $(5000) $7000 $10,000 $94,000segment margin less allocated common fixed expenses $(26,000) $(15,000) $(3000) $0 $84,000toxemia expects similar operating results for the upcoming year. if toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should toxemia discontinue? a. no flavors should be discontinued b. wimpy c. wimpy and mild d. wimpy, mild, and medium

10. problems and applications q10 a market is described by the following supply-and-demand curves: qsqs = = 2p2p qdqd = = 300â’p300â’p the equilibrium price is $ and the equilibrium quantity is . suppose the government imposes a price ceiling of $90. this price ceiling is , and the market price will be $ . the quantity supplied will be , and the quantity demanded will be . therefore, a price ceiling of $90 will result in . suppose the government imposes a price floor of $90. this price floor is , and the market price will be $ . the quantity supplied will be and the quantity demanded will be . therefore, a price floor of $90 will result in . instead of a price control, the government levies a tax on producers of $30. as a result, the new supply curve is: qsqs = = 2(pâ’30)2pâ’30 with this tax, the market price will be $ , the quantity supplied will be , and the quantity demanded will be . the passage of such tax will result in .