As an entrepreneur at the mall, you sell 6000 donuts a day at 50¢ each. When the price is increased to 70¢ each, sales drop to 5000 donuts per day. Assuming a linear relationship between price and number of donuts sold, and given a fixed overhead of $1000 per day and cost of 25¢ per donut, determine the optimal price per donut to maximize profit.

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Consider yourself as an entrepreneur at the Mall selling 6000 donuts a day at 50c each. When you raised the price to 70C each, the sale dropped to 5000 donuts per day. Now, assume that there is a linear relationship between the price and number of donuts sold. Further assume that there is a fix cost (overhead) of $1000 per day and the cost of each donut is 25c. What would be the price of the donut to maximize the profit?

Consider yourself as an entrepreneur at the Mall selling 6000 donuts a day at 50c each. When you raised the price to 70C each, the sale dropped to 5000 donuts per day. Now, assume that there is a linear relationship between the price and number of donuts sold. Further assume that there is a fix cost (overhead) of $1000 per day and the cost of each donut is 25c. What would be the price of the donut to maximize the profit?

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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As an entrepreneur at the mall, you sell 6000 donuts a day at 50¢ each. When the price is increased to 70¢ each, sales drop to 5000 donuts per day. Assuming a linear relationship between price and number of donuts sold, and given a fixed overhead of $1000 per day and cost of 25¢ per donut, determine the optimal price per donut to maximize profit.

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