Food Fanatics caters meals where their cost of producing an extra meal is $25.Each of their meals is standard and sells for $20.At this rate what should the company do?

A) Produce more meals and increase their profit
B) Produce fewer meals and increase their profit
C) Not change production
D) None of the above

Question

​Food Fanatics caters meals where their cost of producing an extra meal is $25.Each of their meals is standard and sells for $20.At this rate what should the company do?A) ​Produce more meals and increase their profitB) Produce fewer meals and increase their profitC) Not change productionD) ​None of the above

Dedra Nuñez · Accepted Answer

Final Answer : B, Explanation :  Producing fewer meals would reduce losses since each meal is sold for $5 less than its production cost.

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