Question

Betty’s Bakery bakes fresh bread every morning. Any bread not sold by the end of the day is thrown away. A loaf of bread costs Betty $2.00 to produce, and she prices loaves of bread at $3.50 per loaf. Suppose near the end of one day Betty still has 12 loaves of bread on hand. Which of the following is correct?

A. Betty should only sell the remaining bread for $3.50 per loaf since that is the regular price.
B. Betty should just throw the bread away and change the price of her bread starting tomorrow to make sure she sells all of her bread each day.
C. Betty should only sell the remaining bread for $2.00 per loaf or more since that is what the bread costs to make.
D. Betty should be willing to sell the remaining bread for any price above $0 per loaf since she will have to throw it away if she does not sell it for something.

Answer 1

Correct Statement is D

Step-by-step explanation:

Provided details,

Cost for each loaf of bread = $2.00

Selling price of each loaf = $3.50

Provided by the end of day all the breads has to be sold as if not sold then thrown because each day fresh bread is prepared.

Thus, here provided near the end of day 12 bread loafs are still available for sale. Now since its day end, it should be sold at any price the consumer is ready to pay because if not sold then the bread is to be thrown.

Since it states to recover any amount that can be recovered from such sale rather than complete loss of $2
`*` 12 = $24.

Therefore correct option is,

Statement D