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One of Margaret s favorite things in the whole world is her grandma s banana bread. Margaret has become so obsessed with this bread that

One of Margarets favorite things in the whole world is her grandmas banana bread. Margaret has become so obsessed with this
bread that shes using her grandmas recipe and making it for her friends. She and her friends have tweaked the recipe so that they can
make delicious banana chocolate chip muffins and banana squares, too. Theyve turned this into a side business, selling their items to
local convenience stores.
Theres one problem: the baked goods are best when well-ripened bananas are used. Theyre often available at a reduced price. But
when theyre not, Margaret has to buy green bananas at full price and wait for them ripen.
Here are the typical costs and selling prices for each product.
Bread
(per loaf)
Muffin
(per dozen)
Squares
(per dozen)
Selling price $3.70 $4.90 $3.60
Variable costs 2.102.401.50

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