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ASAP please Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for
ASAP please Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for BD 4.25 and has managed to sell 1,300 cups. The variable cost per cup is BD 2 and the fixed costs per month are BD 1,350. In the second month Dana has decided to increase the selling price per cup by 22%. However, this increase in the selling price led to a 37% decrease in the number of cups sold.
Required: (Round to the nearest cup)
Assuming that fixed costs would remain unchanged:
1- How much profit did Dana earn in the first and second months after introducing the healthy smoothie?
2- If Dana wants to make the same profit she earned in the first month, how many cups should be sold at the price of the second month?
3- Based on your results in requirement (1), was it better for Dana to keep the selling price of the first month or to increase the selling price by 22%? Why?
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