Score: 0.4 of 1 pt Do HomewEnd of Chapter 2.4 HY Score: 82.67%, 12.4 of 15 Chang

Question

Score: 0.4 of 1 pt Do HomewEnd of Chapter 2.4 HY Score: 82.67%, 12.4 of 15 Change Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs Ciabatta Bread Sold Price (P) Total Per Hour (Q) Cost (TC) $2.00 5.50 6.50 5.0010.00 4.50 13.00 4.00 15.50 3 5017.50 19.00 2.50 21.00 $6.00 Name Due: Last Worked Current Sco 2.00 a. To maximize profits, Maria should sell 4 loaves of ciabatta bread per hour. (Enter your response as an integer) Maria should charge a price of $ 4.00 (Enter your response rounded to two decimal places ) Question Maria's maximum profi is s(Enter your response rounded to two decimal places) Question V Question OK ! Enter your answer in the answer box and then click Check Answer

Explanation / Answer

Answer : According to given informations, Maria sells 4 ciabatta breads in one hour with the intension to earn maximum profit. In case of selling 4 ciabatta breads the price level is $4.00 per ciabatta bread. This means the total earned revenue for selling 4 ciabatta breads is (4.00 * 4) = $16.00 [ As Total Revenue = Price * Quantity level ]

For selling 4 ciabatta breads the total cost, TC = $15.50   (Given).

Now, Profit = Total Revenue - Total Cost = 16.00 - 15.50 = $0.50

Therefore, Maria earns $0.50 maximum profit.

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