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Sarah operates a small ice cream shop in a popular resort town. She sells several flavors of ice cream and three flavors of frozen yogurt.
Sarah operates a small ice cream shop in a popular resort town. She sells several flavors of ice cream and three flavors of frozen yogurt. Her total cost function per day is C(I, Y) = 27 + 0.05I2 + 0.025Y3, where I is ice cream and Y is yogurt. Sarah is a price taker in the very competitive market for cold treats in this town. The price of ice cream is $5.50 and the price of frozen yogurt is $4.75. What level of daily ice cream sales would maximizes profits?
A. 25
B. 35
C. 45
D. 55
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