The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 11 - 15Q If your cost of producing bran muffins is CQ) = 3.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instructions: Enter your response for the optimal package price rounded to two decimal places. Optimal package size: units Optimal package price: $
The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 11 - 15Q If your cost of producing bran muffins is CQ) = 3.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instructions: Enter your response for the optimal package price rounded to two decimal places. Optimal package size: units Optimal package price: $
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase
in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of
cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in
packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 11
-15Q
If your cost of producing bran muffins is C(Q) = 3.5Q, determine the optimal number of bran muffins to sell in a single package and the
optimal package price.
Instructions: Enter your response for the optimal package price rounded to two decimal places.
Optimal package size:
Optimal package price: $
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f7ddc63-0476-43d4-9b2d-15e8070b202a%2F6d928e1c-2e59-4359-a104-35fac271274a%2F9d0h2m_processed.png&w=3840&q=75)
Transcribed Image Text:The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase
in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of
cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in
packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 11
-15Q
If your cost of producing bran muffins is C(Q) = 3.5Q, determine the optimal number of bran muffins to sell in a single package and the
optimal package price.
Instructions: Enter your response for the optimal package price rounded to two decimal places.
Optimal package size:
Optimal package price: $
units
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