Business, 26.02.2020 02:02 JadeK4853

A bagel shop sells fresh baked bagels from 5 a. m. until 7 p. m. every day. The shop does not sell day-old bagels, so all unsold bagels are thrown away at 7 p. m. each day. The cost of making and selling a dozen bagels is $1.00; there are no costs associated with throwing bagels away. If the manager has 8 dozen bagels left at 6:30 p. m. on a particular day, which of the following alternatives is most attractive?

A. Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen.
B. Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen.
C. Starting tomorrow, lower the price on all bagels so they will all be sold earlier in the day.
D. Throw the bagels away and produce 8 fewer dozen bagels tomorrow.

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A bagel shop sells fresh baked bagels from 5 a. m. until 7 p. m. every day. The shop does not sell d...

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