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First determine the linear relationship of the number of units sold per day, n, to the unit price, x, n(x)=a+bx, then maximize the profit function
First determine the linear relationship of the number of units sold per day, n, to the unit price, x, n(x)=a+bx, then maximize the profit function with respect to the unit price, x. Profit = total revenue -total cost -overhead. As a salesperson that sells 1,000 sodas a day for $3 each, once you raised the price to $4.00 each, the sale plummeted to 800 sodas a day. If there is a linear relationship between the price and the number of sodas sold, assume that there is a fixed cost (overhead) of $500 per day and the cost of each soda is $1.50. What would be the price of a soda for maximum profit
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