posted by .

Matt owns a donut shop. He rents a space for $1500 a month and pays his only employee $300 a month. Matt can serve 1000 donuts each month. His variable cost per donut is $2. what price does Carlos need to charge in order to make a profit of $2000 per month? A. $3.80 B. $5.80. and why?

Boy. those are expensive donuts. And what a strange demand curve Matt faces.

Use algebra. Total costs are 1500+300+(2*1000) = $3800.
If he manages to sell hs 1000 donuts for 5.80 each, total revenue is $5800 giving him a $2000 cash profit.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Calculus

    A donut is generated by rotating the circle, S, defined by (x-3)^2 +y^2 =4 about the y axis. If the anagement of dunkin donuts wants to know how to price these donuts use intergral calculus to help them (i) set up a definite intergral …
  2. Math

    Irma rents movies online each month it costs her a fee of $4.99 per month plus an additional $0.99 for each video game that she rents. Which equation can be used to find c, the cost Irma pays each month to rent movies and x video games?
  3. Math Help? Check my answers.

    1. r/5 = 9/21 r = 9 r = 2.14 r = 11.66 r = 37.8 2. A recipe calls for 3 cups of flour to make 3 dozen cookies. Use the proportion to calculate how much flour is needed to make 9 dozen cookies. 3cups/3dozen = xcups/9dozen 6 cups 3.5 …
  4. accounting II

    Joshua owns an apartment complex with 7 tenants. Each unit rents for $1,500 per month. At the end of April, three tenants were past due on paying their rent. Which of the following represents the correct adjusting journal entry Matt …
  5. Algebra 2

    Janine is considering two movie rental plans. Plan A can be modeled with the equation C=3m and Plan B can be modeled with the equation C=2m+5 where C represents the cost in dollars and M represents the number of movies rented each …
  6. Algebra

    A shop sells coffee and donuts. The coffee sells for $4.31 and donuts for $0.83 apiece. The cost to produce a cup of coffee is $1.50 and the cost to make a donut is $0.76. In month 1 the quantity of coffee sold is 1,283 and donuts …
  7. operation managment

    Garden Variety Flower shop uses 625 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 15 percent of cost, and ordering costs are $125 per order. The manager has been using an order …
  8. Math help

    Formulate a linear programming problem for the following situation. Homer Simpson has created two donut assortments for the the Springfield donut shop. The bargain assortment includes 4 pink frosted and 8 glazed donuts and the deluxe …
  9. Math

    A donut shop charges $.70 for each donut and $.30 for a carry out box. Shirley has five dollars to spend. At most how many donuts can she buy if she also wants them in a carry-out box?
  10. math

    Lucy's employer pays 70% of the total cost of her family's health insurance plan, while Lucy pays the rest. If the total cost of the plan will increase from $450 per month to $650 per month, how much more will Lucy have to pay each …

More Similar Questions