Question
GourmetDelights.co has recently decided to start selling premium gourmet chocolates online through a service it calls O'Chocolates. The cost of procuring the ingredients for each
GourmetDelights.co has recently decided to start selling premium gourmet chocolates online through a service it calls O'Chocolates. The cost of procuring the ingredients for each chocolate is $3.50, and the cost of operating and maintaining O'Chocolates amounts to $1500 per month. The company is currently charging customers $8.50 per chocolate.
Part 1: What are the associated (monthly) cost, revenue, and profit functions?
Part 2: How many chocolates must be sold per month to break even?
Part 3: What is the maximum profit that can be achieved with the current pricing strategy?
Part 4: If the price is increased to $11.50 per chocolate, how many chocolates must be sold per month to achieve a profit of $5000?
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