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Dana owns a food truck and has introduced a new type of healthy smoothie. In...

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Accounting

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Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for 8D350 and has managed to sell 1,100 cups The variable cost per cup is BD 1.25 and the fixed costs per month are BD 1,250. In the second month Dana has decided to increase the selling price per cup by 20%. However, this increase in the selling price led to a 35% decrease in the number of cups sold. Required (Round to the nearest cup) Assuming that fixed costs would remain unchanged 1. How much profit did Dana earn in the first and second months after introducing the heaithy smoothie? 2. If Dana wants to make the same profit she earned in the first month, how many cups should be sold at the price of the second month? 3. Based on your results in requirement (1). Was it better for. Dana to keop the seling price of the first month or to increase the solling price by 20% ? Why

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