A simple item that is to be sold at a small specialty store has $500 in fixed costs and $8 per item in variable costs. The owners assume they can sell 6 items if they charge $116 each, and 9 items at a price of $107 each. (You may and should assume that demand is a linear function for this problem.) For how many units sold/produced is the marginal profit 60 dollars per item? Answer: units. (Your answer should be a whole number.)
A simple item that is to be sold at a small specialty store has $500 in fixed costs and $8 per item in variable costs. The owners assume they can sell 6 items if they charge $116 each, and 9 items at a price of $107 each. (You may and should assume that demand is a linear function for this problem.) For how many units sold/produced is the marginal profit 60 dollars per item? Answer: units. (Your answer should be a whole number.)
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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![The problem presented involves determining the number of units that must be sold or produced for a small specialty store to achieve a marginal profit of $60 per item.
Parameters:
- **Fixed Costs:** $500
- **Variable Costs:** $8 per item
- **Price Points:**
- 6 items can be sold at $116 each
- 9 items can be sold at $107 each
- **Assumption:** Demand is a linear function.
**Question:** How many units sold/produced result in a marginal profit of $60 per item?
**Answer: [___] units.**
The answer should be a whole number.
---
In this particular problem, a linear demand function helps determine the relationship between price and quantity sold and is necessary for calculating the marginal profit per item. The goal is to solve for the appropriate number of units that bring the desired profit margin.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca24997c-457e-453a-a19b-7a30b4d1b1d9%2F42e3aa86-7d14-406e-9cbc-6c256f87288e%2F3lgbtc_processed.png&w=3840&q=75)
Transcribed Image Text:The problem presented involves determining the number of units that must be sold or produced for a small specialty store to achieve a marginal profit of $60 per item.
Parameters:
- **Fixed Costs:** $500
- **Variable Costs:** $8 per item
- **Price Points:**
- 6 items can be sold at $116 each
- 9 items can be sold at $107 each
- **Assumption:** Demand is a linear function.
**Question:** How many units sold/produced result in a marginal profit of $60 per item?
**Answer: [___] units.**
The answer should be a whole number.
---
In this particular problem, a linear demand function helps determine the relationship between price and quantity sold and is necessary for calculating the marginal profit per item. The goal is to solve for the appropriate number of units that bring the desired profit margin.
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