Essay
Yogurt Supreme sells yogurt cones in a variety of natural flavours. Data for a recent month appear below:
Revenue (10,000 cones @ $0.93 each)$9,300
Cost of ingredients $3,500
Rent 2,500
Store attendant 1,800 7,800
Income $1,500
a)The manager has received a call from a club requesting a bid on 100 cones to be picked up in 3 days. The cones could be made up well in advance by the store attendant during slack periods. Each cone would require, however, a special plastic cover that costs $0.05. What is the minimum acceptable price per cone for this special order?
b)If the club is able to pay no more than the minimum price, what other considerations may affect the decision? List two.
Correct Answer:

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a)Price = $3,500/10,000 = $0.35 plus the...View Answer
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