Bill's Bakery bakes fresh bread every morning.Any bread not sold by the end of the day is thrown away.A loaf of bread costs Bill $1.50 to produce,and he prices loaves of bread at $4 per loaf.Suppose near the end of one day Bill still has 12 loaves of bread on hand.Which of the following is correct?
A) Bill should only sell the remaining bread for $4 per loaf since that is the regular price.
B) Bill should only sell the remaining bread for $1.50 per loaf or more since that is what the bread costs to make.
C) Bill should be willing to sell the remaining bread for any price above $0 per loaf since he will have to throw it away if he does not sell it for something.
D) Bill should just throw the bread away and change the price of his bread starting tomorrow to make sure he sells all of his bread each day.
Correct Answer:
Verified
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