Problem
Davids's doughnuts has been operating at a loss for the past 5 months. To makeup for lost profits management has determine they will need to increase their productivity ratio so that revenue is 6 times their costs. A regular doughnut costs $1 and sells for $6. A premium doughnut costs $3 to make and sells for $8. David's doughnuts pays their employees $10 an hour and they work 30 days a month for 8 hours. Given the company already sells 9,822 regular doughnuts per year, how many premium doughnuts must they sell to achieve a productivity ratio of 4?