The organization of a university-approved Bachelor of Commerce Fall Break Get- Together has a fixed cost of $850 and a variable cost of $9 per attendee. Its expected attendance (A) is elastic with its ticket price (p) according to the formula A(p) = 450 - 6p. What price should be set to maximize the organizer's profit (which, of course, will be donated to charity)? Round your answer to two decimals (in $).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The organization of a university-approved Bachelor of Commerce Fall Break Get-
Together has a fixed cost of $850 and a variable cost of $9 per attendee. Its
expected attendance (A) is elastic with its ticket price (p) according to the formula
A(p) = 450 - 6p. What price should be set to maximize the organizer's profit (which,
of course, will be donated to charity)? Round your answer to two decimals (in $).
Your Answer:
Answer
Transcribed Image Text:The organization of a university-approved Bachelor of Commerce Fall Break Get- Together has a fixed cost of $850 and a variable cost of $9 per attendee. Its expected attendance (A) is elastic with its ticket price (p) according to the formula A(p) = 450 - 6p. What price should be set to maximize the organizer's profit (which, of course, will be donated to charity)? Round your answer to two decimals (in $). Your Answer: Answer
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