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Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for BD4.25 and
Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for BD4.25 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 foxed costs would remain unchanged: 1. How much prolit did Dana earn in the first and second months alter 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 keop the seling price of the first month or to increaso the selling price by 22% ? Why
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