Question
The marketing department of a company has established that when the price of coffee is $6000 per ton, they sell 2 tons of coffee, and
The marketing department of a company has established that when the price of coffee is $6000 per ton, they sell 2 tons of coffee, and when the price is $4500 per ton, they sell 3 tons of coffee.
a. Assuming the price-demand function p(x) is linear, establish the variables p and x and sketch its graph. b. What is the price per kilogram of coffee if the company reaches its maximum production capacity of 5 tons? c. What is the corresponding revenue function R(x)? d. How many tons of coffee must the company produce, and at what price per ton does the company have to sell it in order to reach its maximum revenue?
Step by Step Solution
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Step: 1
Lets solve this step by step addressing each part of the problem a Establish the PriceDemand Function p x px px and Sketch the Graph Step 1 Define the Variables Let x x x represent the quantity of cof...
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
6th edition
978-0133852103
