You are considering buying an oven for your bakery. The oven allows you to "bake fresh cakes to order." However, baking in the store is more expensive than receiving from suppliers, and you estimate that each in-store baked cake costs $2.50 to make and bake (in-store cakes are still sold for $3.00). The oven allows you to capture all demand: if demand exceeds what you ordered from your supplier at the start of the day, you can just "bake-to-order." Conversely, if there are any leftover cakes, you can still sell them for $1.00 per bagel.

2. If you purchase the oven, how many cakes would you want order from your supplier at the beginning of the day?
4. If you purchase the oven, how many cakes do you expect to bake in-store each day? How many leftover cakes do you expect to sell at the end of each day?
6. How much are you willing to pay for the oven per day?