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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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