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Situation: A sandwich shop sells its signature sandwich for $4.75 and at this price, sells 500 sandwiches per month. A survey indicates that an additional
Situation: A sandwich shop sells its signature sandwich for $4.75 and at this price, sells 500 sandwiches per month. A survey indicates that an additional 125 people would buy this sandwich each month for every $0.25 decrease in the price. a) Determine the demand (or price) function. Show your steps and define your variables b) Determine the revenue function. c) Determine the revenue when 350 sandwiches are sold. d) Determine the marginal revenue function. e) Determine the marginal revenue when 350 sandwiches are sold. What does this represent f) The cost, C, in dollars of producing x sandwiches is C(x) =0.07x--20x + 2500. What is the cost of making 350 sandwiches? g) What is the marginal cost of making 350 sandwiches? What does this represent? h) Determine the actual cost for making the 351st sandwich.i) Determine the prot function in simplest form. j) Determine the prot of selling 350 sandwiches k) Determine the marginal prot of selling 350 sandwiches. What does this represent? 1) Determine the actual increase in prot that the company will receive by selling the 351St sandwich. In) How many sandwiches must be sold to reach the maximum prot? Round to the nearest whole number. n) How much should the sandwich shop charge per sandwich to maximize prots
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