The Cone Head House sells ice-cream cones in a variety of flavours. Financial data for a recent week are shown below.

The Cone Head’s manager received a call from a university student club requesting 100 cones to be picked up in three days. The cones could be produced in advance by the store attendant during slack periods, and then stored in the freezer. Each cone requires a special plastic cover that costs $0.10.

Required
a. Discuss the quantitative information relevant to this decision.

b. Calculate the minimum price per cone for this special order.

c. Explain why Cone Head House’s manager might be willing to sell cones at the minimum selling price you calculated in part (b).

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Revenue (1000 cones @ $2.00) Cost of ingredients Rent Store attendant Profit $2000 600 350 650 400