I need help asap?

A company is experimenting with the pricing on a calculator. They currently average 200 daily sales at a price of $10. Research suggests that if they raise the price of the calculator by 50¢ that they will make 5 fewer sales. It costs the company $4 to manufacture a calculator.

a) Find an equation for the revenue the company will make.

b) Given that Profit = Revenue – Cost, find an equation for the profit the company can make.

c) What price should the company charge for a calculator in order to maximize the profit?

Update:

2 marks for a revenue equation

2 marks for a profit equation

2 marks for showing work appropriately to find price to maximize profit

1 mark for finding the price that will maximize profit consistent with work

1 Answer

Relevance
  • 2 months ago

    a) Find an equation for the revenue the company will make..

    200*10

    b) Given that Profit = Revenue – Cost, find an equation for the profit the company can make.

    c) What price should the company charge for a calculator in order to maximize the profit?

    200*(10-4)=1200

    200*0.95(10+0.05 -4)=1130.5

Still have questions? Get your answers by asking now.