Duncans sells doughnuts. Data for a recent week are as follows. The manager estimates that, if Duncans

Question:

Duncans sells doughnuts. Data for a recent week are as follows.

The manager estimates that, if Duncans increased the price of doughnuts from $1.75 to $1.93 each, weekly volume would be cut to 850 doughnuts due to competition from other nearby cake shops.

Required

Estimate the profit-maximising price per doughnut.

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Management Accounting

ISBN: 9780730369387

4th Edition

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

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Question Posted: Jul 14, 2021 02:22 AM

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Duncans sells doughnuts. Data for a recent week are as follows. The manager estimates that, if Duncans

Question:

Revenue (1000 doughnuts @ $1.75 each) Cost of ingredients $1750 $640 500 Rent Store attendant 600 1740 Pre-tax profit $ 10

Step by Step Answer:

Per cent change in price 193 175175 10 Per cent change in demand 1000 8...View the full answer

Management Accounting

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