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 $2.00. Because this shop does not sell day-old donuts the next day, what should the manager do if she still has ten dozen left at 2:30 p.m.?

Question

Quizplus · Accepted Answer

If the manager still has ten dozen left at 2:30 pm, it is unlikely that they will sell out by the time the shop closes at 3 pm. Lowering the price of the remaining donuts, even if it falls below the cost of making them, is a better option than throwing them away and losing even more money. This will attract customers who may not have been interested in buying donuts at the original price, and the shop will at least recover some of the cost of making the donuts.

A Donut Shop Sells Fresh Baked Donuts from 5 A Until