Question
1.RelaxFull has two stores selling bath soaps and moisturizers, one in Plaza Frontenac and one in West County Center.The have a contract with Sammy Soaps
1.RelaxFull has two stores selling bath soaps and moisturizers, one in Plaza Frontenac and one in West County Center.The have a contract with Sammy Soaps to sell their soaps in various colors and scents in both stores, paying Sammy Soaps $1.00 a bar for all the soap they want to buy and resell.RelaxFull has been selling Sammy Soaps for $2.00 a bar for the past year at both stores, selling an average 200 bars a month of Sammy Soaps at each store.
Two months ago RelaxFull increased the price of Sammy Soaps to $2.50 at their stores.After the price increase their monthly sales of Sammy Soaps has averaged 140 bars at their Plaza Frontenac store, and 100 bars at their West County Mall store.Is $2.50 the profit-maximizing price at the two stores?If not, what is the profit-maximizing price at each store?(6 points)
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