Question: Please explain in details, especially the last one. Problem #3 (5 Points) To help pay for tuition Rita is considering starting a part time business


Please explain in details, especially the last one.
Problem #3 (5 Points) To help pay for tuition Rita is considering starting a part time business baking and decorating custom-made cakes. In order to comply with California's food safety laws, she would need to bake the cakes in a commercial kitchen, which costs $200 per month to rent. She estimates it takes $3.50 worth of ingredients and $6 of labor to make a cake. She plans to charge customers $16 per cake, and she will only sell whole cakes. _2 points Calculate how many cakes Rita has to sell to break even cakes/month 2 points Rita has discovered that there are 3D food printers that can be used to decorate cakes. If she doesn't have to decorate her cakes by hand, her labor costs would be 50% lower (She, of course, still has to bake the cakes). However, 3D printer is expensive, costing $250 per month to rent. Complete the following statement and, also show how you derived this number for full credit. In order to make renting a 3D printer more profitable than decorating by hand, Rita would have to sell (circle one) more than less than cakes per month. 1 point If demand were to become 75 cakes a month, what should Rita do to maximize profits? Circle one: a) Rent the kitchen and rent the 3D printer to automate decoration Rent the kitchen, but decorate cakes by hand Do not get into the cake making business, as it will not be profitable We don't have enough information to tellStep by Step Solution
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