Question: Donut You Know makes custom donuts for holidays throughout the year for fun and to help with marketing. The owners want to make a special

Donut You Know makes custom donuts for holidays
Donut You Know makes custom donuts for holidays
Donut You Know makes custom donuts for holidays throughout the year for fun and to help with marketing. The owners want to make a special batch of heart shaped donuts for Valentine's Day and need to determine how many to make. They sell the specialty donuts for $3.95 each. However, the next day they are discounted to $0.50 each. Custom donuts cost $3.25 each to make (labor and materials). Donuts not sold on the holiday they are made for have to be packaged to be sold the next day. This incurs an additional $0.10 of cost per donut. Donut You Know has estimated demand as follows: a) What is the target service level? Enter your response as a percentage rounded to one decimal place (xx.x\%). b) How many donuts should Donut You Know make? Round to nearest whole number

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