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Joe Cooper owns and operates an ice cream truck that he drives through residential neighborhoods to sell five different treats to the area’s children On average Cooper sells 100 of each type of treat per day for the 120 days per year when the weather is warm enough to generate sales. Four of his products are profitable, but the other, Creamy Delight, indicates a loss as follows:
Selling price/unit $1.75
Cost of each treat 0.80
Truck operating costs/unit 0.37
Joe’s salary/unit 0.60
Administrative costs/unit 0.08
Loss/unit $(0.10)
If Cooper cannot raise his selling price, he should