Problem 803

A deli sells 640 sandwiches per day at a price of $8 each.

A)    A market survey should that for every $0.10 reduction in the price, 20 more sandwiches will be sold. How much should the deli charge in order to maximize revenue?

B)    A different market survey shows that for every $0.20 reduction in the original $8 price, 10 more sandwiches will be sold. Now how should the deli charge in order to maximize revenue?

 

Solution:-

 

A)    The deli should charge $5.6 for a sandwich to maximize revenue.

B)    Now the deli should charge $8 for a sandwich to maximize revenue.

 

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