A kids' organization sold 570 bars last year at $ 2.55 per candy bar. Research has suggested that for each $ 0.25 price increase, they will sell 20 less candy bars. They want to know what price should they sell their candy bars at to maximize their revenue. Please help them out, showing your work neatly in the following steps. And please label the steps clearly with the letters A through F A) Define your variables. This means that for every letter you use to represent a value, you communicate what it equals in words. B) Find the linear equation that relates the price and the number sold. C) Determine a function that represents the Revenue. (Remember, Revenue = (Price)*(Number Sold)).
A kids' organization sold 570 bars last year at $ 2.55 per candy bar. Research has suggested that for each $ 0.25 price increase, they will sell 20 less candy bars. They want to know what price should they sell their candy bars at to maximize their revenue. Please help them out, showing your work neatly in the following steps. And please label the steps clearly with the letters A through F A) Define your variables. This means that for every letter you use to represent a value, you communicate what it equals in words. B) Find the linear equation that relates the price and the number sold. C) Determine a function that represents the Revenue. (Remember, Revenue = (Price)*(Number Sold)).
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphs To Economics
Problem 2SQP
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