A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales has been 84 dozen cookies. When the price was decreased to $6.00 per dozen, the average daily sales increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each dozen cookies has a variable cost of 70 cents to make, plus additional daily fixed costs of $55.00
A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales has been 84 dozen cookies. When the price was decreased to $6.00 per dozen, the average daily sales increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each dozen cookies has a variable cost of 70 cents to make, plus additional daily fixed costs of $55.00
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales has been 84 dozen cookies. When the price was decreased to $6.00 per dozen, the average daily sales increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each dozen cookies has a variable cost of 70 cents to make, plus additional daily fixed costs of $55.00
![A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales has
been 84 dozen cookies. When the price was decreased to $6.00 per dozen, the average daily sales
increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each
dozen cookies has a variable cost of 70 cents to make, plus additional daily fixed costs of $55.00
Find a function that models the daily profit in terms of the sales a in dozens of cookies.
P(x) =
Now, find the daily profit when 48 dozen cookies are manufactured and sold.
$
Round all answers to the nearest hundredth.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2717d0a-9cc1-471a-88d4-8bb6a5513183%2F773fae9c-519e-456b-950d-f77682905277%2Fk2gap9w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A small company produces organic cookies. When the price is $9.00 per dozen, the average daily sales has
been 84 dozen cookies. When the price was decreased to $6.00 per dozen, the average daily sales
increased to 110 dozen cookies. Assume that daily cookie sales is linearly related to price per dozen. Each
dozen cookies has a variable cost of 70 cents to make, plus additional daily fixed costs of $55.00
Find a function that models the daily profit in terms of the sales a in dozens of cookies.
P(x) =
Now, find the daily profit when 48 dozen cookies are manufactured and sold.
$
Round all answers to the nearest hundredth.
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