Question

Every week, our school cafeteria sells approximately 2000 chick wraps for 1.50 each. Through market research, the cafeteria manager determines that for every0.10 increase in price, she will sell 100 fewer wraps. What is the maximum revenue?

Answer 1

To find the maximum revenue, we need to determine the price that will maximize the number of wraps sold. By calculating the revenue for different number of $0.10 increases, we can identify the value that yields the highest revenue.

Step-by-step explanation:

To find the maximum revenue, we need to determine the price that will maximize the number of wraps sold. We know that for every $0.10 increase in price, 100 fewer wraps are sold.

Let's calculate the price that maximizes revenue:

Price = $1.50 + ($0.10 x Number of $0.10 increases)

Revenue = Price x Quantity

By substituting the price equation into the revenue equation, we can express revenue in terms of the number of $0.10 increases:
Revenue = ($1.50 + ($0.10 x Number of $0.10 increases)) x (2000 - (100 x Number of $0.10 increases))

To find the maximum revenue, we need to determine the number of $0.10 increases that maximizes the revenue.

We can do this by calculating the revenue for different number of $0.10 increases, and identifying the value that yields the highest revenue.