To verify the optimal number of cupcakes to make is indeed 13 per day, what is the
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Question:
Assuming your production costs rise to $1.49 and you no longer sell leftovers at 99¢ but instead give them to a food bank for free, what is the new Critical Fractile (CF) now?
- The optimal # of cupcakes to make is 13
- Your cupcakes sell for $2.49 each.
- Each cupcake costs $1.24 to make.
- You never sell yesterday’s cupcakes. To get rid of leftover cupcakes, you cut the price to .99¢ in the last hour of the day.
- Demand is distributed like the sum of three dice, which is summarized in the table below:
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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