A Donut Shop Sells Fresh Baked Donuts from 5 A 3

A donut shop sells fresh baked donuts from 5 A.m.until 3 p.m.every day.The shop does not sell day-old donuts, so all unsold donuts are thrown away at 3 p.m.each day.The cost of making and selling a dozen donuts is $1.50; there are no costs associated with throwing donuts away.If the manager has 10 dozen donuts left at 2:30 p.m.on a particular day, which of the following alternatives is most attractive?

A) Lower the price of the remaining donuts, even if the price falls below $1.50 per dozen.
B) Lower the price of the remaining donuts, but under no circumstances should the price fall below $1.50 per dozen.
C) Throw the donuts away and produce 10 fewer dozen donuts tomorrow.
D) Starting tomorrow, lower the price on all donuts so they will all be sold earlier in the day.