Final answer:
To determine the lowest price for a donut that ensures a profit, multiply the cost $0.50 by the profit margin 20% and add it to the cost per donut. In this case, the lowest price would be $0.60. Thus, none of the given options are correct.
Step-by-step explanation:
To determine the lowest price you could charge for a donut and still make a profit, you need to consider the cost of production and the desired profit margin.
Given a cost of $0.50 to produce a donut and a profit margin of 20%, you can calculate the minimum price as follows:
Calculate the profit per donut by multiplying the cost by the profit margin: $0.50 * 0.20 = $0.10
Add the profit per donut to the cost per donut to find the minimum price: $0.50 + $0.10 = $0.60
Therefore, the lowest price you could charge for a donut and still make a profit is $0.60.
None of the given options are correct.
Given a cost of $0.50 to produce a donut, what is the lowest price you could charge for a donut and still make a profit? Let's assume a profit margin of 20%.
a. $1
b. $0.50
c. $2
d. $0.25