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Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: a

Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates:

  • a weekly demand of 307 at a price of $13 per toaster
  • a weekly demand of 192 at a price of $17 per toaster

The financial department estimates that weekly fixed costs will be $1,363 and variable costs (cost per unit) will be $5.

Assume:

  • the relationship between price and demand is linear
  • the cost function in linear

Use your models to predict the marginal profit when Yaster is producing and selling 261 toasters per week. Round to the nearest cent.

$ per toaster

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