A deli sells 320 sandwiches per day at a price of $4 each. A market survey shows

Question

A deli sells 320 sandwiches per day at a price of $4 each. A market survey shows that for every $0.10 reduction in the price, 20 more sandwiches will be sold. How much should the deli charge in order o maximize revenue? The deli should charge $2,8 for a sandwich to maximize revenue. (Round to the nearest cent as needed) A different market survey shows that for every $0.20 reduction in the original $4 price, 10 more sandwiches will be sold. Now how much should the deli charge in order to maximize revenue? Now the deli should charge $ for a sandwich to maximize revenue. (Round to the nearest cent as needed.)

Explanation / Answer

( 320 + 20x ) ( 4 - 0.1x )

to maximize the derivative is 0

hence 80 - 2x - 32 - 2x = 0

x = 12

so he will sell 560 sandwiches at $2.8

b)

( 320 + 10x ) * ( 4 - 0.2x )

40 - 2x -64 -2x

x = -6

if possible he has to sell 260 sandwhiches at $5.2, if a $0.2 increase in price results in reduction in demand by 10.

If not just stick to the current price of $4

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