A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day but Sunday. The cost of making and selling a dozen glazed donuts is $1.00. Since this shop does not sell day-old donuts the next day, what should the manager do if he still has ten dozen left at 2:30 p.m.?

Question

Quizplus · Accepted Answer

Lowering the price of the remaining donuts, even if it falls below the cost of production, is the best choice as throwing them away would lead to a loss without any gain. The manager can also consider donating the donuts to a food bank or a shelter if reducing the price does not attract customers. However, the most feasible option is to lower the price and sell the remaining donuts.

A Donut Shop Sells Fresh Baked Donuts from 5 A Until