A donut shop has a fixed cost of $124 per day and a variable cost of $.12 per donut. How many donuts can be produced for $346?
If the donuts are sold for $0.60 each, how much profit or loss would the shop make for the number of donuts produced for $346?
If the price of donuts is increased by 10% for the number of donuts produced for $346, the quantity demanded of donuts will decrease by 8%, how many donuts will be demanded at the new price?
What would be the total cost of donuts produced at the new quantity demanded? How much profit will the company be making at this new production level?