Food Fanatics caters meals where their cost for producing an extra meal is $20.Each of their meals is standard and sells for $25.At this rate what should the company do?
A)Produce more meals and increase their profit
B)Produce fewer meals and increase their profit
C)Not change production
D)None of the above

Question

​Food Fanatics caters meals where their cost for producing an extra meal is $20.Each of their meals is standard and sells for $25.At this rate what should the company do?
A)​Produce more meals and increase their profit
B)Produce fewer meals and increase their profit
C)Not change production
D)​None of the above

Quizplus · Accepted Answer

Since the cost to produce an extra meal is only $20 and each meal sells for $25, the company should produce more meals in order to increase their profit. By producing and selling more meals, they will be able to take advantage of their low production cost and generate more revenue.

​Food Fanatics Caters Meals Where Their Cost for Producing an Extra

Food Fanatics Caters Meals Where Their Cost for Producing an Extra