Suppose You Were Working for Richstone's Bakery and Calculating Whether

Multiple Choice

Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have the following data:P = $20, AVC = $10, AFC = $8 and quantity of birthday cakes produced a day is 20.

A) loss of $10
B) profit of $10
C) profit of $20
D) profit of $40
E) loss of $40