er profit. She asked a market researcher to help her in d that at her current production capacity, each donut le each cupcake costs 25 pesos to make. On the other cudy estimates that if a donut is to be sold at r pesos y pesos per piece, then Tyra can expect to sell around d around (1159 -31y+17r) cinnamon rolls per week. sell each piece of pastry if she wants to maximize her num profit and how many of each pastry should she e school fair? Supply all solutions and computations. lebrating its 50th founding year, Tyra decided to fix the co 50 pesos. At what price should she sell each donut ximize her profit? What would be her maximum profit

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Tyra will be setting up a stall during the school fair where she plans
to sell cupcakes and donuts. She wanted to find out at what price she should sell
each product to maximize her profit. She asked a market researcher to help her in
this task. It was determined that at her current production capacity, each donut
costs 22 pesos to make, while each cupcake costs 25 pesos to make. On the other
hand, the market research study estimates that if a donut is to be sold at r pesos
per piece, and a cupcake at y pesos per piece, then Tyra can expect to sell around
(929-36x+23y) donuts and around (1159 - 31y+17x) cinnamon rolls per week.
5.
(a) How much should Tyra sell each piece of pastry if she wants to maximize her
profit? What is maximum profit and how many of each pastry should she
expect to sell during the school fair? Supply all solutions and computations.
(b) Since the school was celebrating its 50th founding year, Tyra decided to fix the
price of each cupcake to 50 pesos. At what price should she sell each donut
so that she can still maximize her profit? What would be her maximum profit
in this case?
Transcribed Image Text:Tyra will be setting up a stall during the school fair where she plans to sell cupcakes and donuts. She wanted to find out at what price she should sell each product to maximize her profit. She asked a market researcher to help her in this task. It was determined that at her current production capacity, each donut costs 22 pesos to make, while each cupcake costs 25 pesos to make. On the other hand, the market research study estimates that if a donut is to be sold at r pesos per piece, and a cupcake at y pesos per piece, then Tyra can expect to sell around (929-36x+23y) donuts and around (1159 - 31y+17x) cinnamon rolls per week. 5. (a) How much should Tyra sell each piece of pastry if she wants to maximize her profit? What is maximum profit and how many of each pastry should she expect to sell during the school fair? Supply all solutions and computations. (b) Since the school was celebrating its 50th founding year, Tyra decided to fix the price of each cupcake to 50 pesos. At what price should she sell each donut so that she can still maximize her profit? What would be her maximum profit in this case?
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