Question
Quinn Bakery bakes gingerbread cookies and sells them by the dozen. During the holiday season, they bake 1,000 dozen cookies. They can sell the plain,
Quinn Bakery bakes gingerbread cookies and sells them by the dozen. During the holiday season, they bake 1,000 dozen cookies. They can sell the plain, undecorated cookies (as is) for $2.50 per dozen. If they decorate the cookies at an additional cost of $1 per dozen, each decorated dozen could be sold for $4.00. Should Quinn Bakery sell the cookies undecorated (as is) or should the cookies be decorated (processed further)?
A. Quinn Bakery should sell undecorated cookies (as is) because operating income will be higher by $500 than if they sell them decorated (processed further).
B. Quinn Bakery should sell undecorated cookies (as is) because operating income will be higher by $3,500 than if they sell them decorated (processed further).
C. Quinn Bakery should decorate the cookies because operating income will be higher by $500 than if they sell them undecorated (as is).
D. Quinn Bakery should decorate the cookies because operating income will be higher by $3,500 than if they sell them undecorated (as is).
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