MATH SOLVE

2 months ago

Q:
# A company can produce a toy bear at a cost of $5 per bear. When the company sells the bears at a price of $34, they can sell 560 bears each week. It is estimated that for every $0.50 decrease in the price, they can sell 20 more bears. Find the price that will maximize the profit for the company.

Accepted Solution

A:

Answer:$290Step-by-step explanation:Costing price of a toy bear = $5.00Selling price of a toy bear = $34.00Profit comes from each toy bear = 34.00 - 5.00 = $29.00Company can sell the number of toy bears each week = 560The profit for the week = 560 × 29.00 = $16,240If the company decrease $0.50 in the price.The new price would be = $34.00 - $0.50 = $33.50The profit from each bear = 33.50 - 5.00 = $28.50They can sell 20 more bears.Now the number of sale of bears = 560 + 20 = 580Now the profit for the week = 580 × 28.50 = $16,530The price that will maximize the profit = 16,530 - 16240 = $290