Question
during the summer months, sarah makes and sells necklaces on the beach. last summer she sold the nacklaces for $10 each. Her sales averaged 20 per day. Considering a price increase, she took a small survey and found that for every dollar increase, she would lose two sales a day. If the material for each necklaces costs $6, what should her selling price be to maximize the profit?
pls i really need your help for this one. have tried all my best but i don't get it. my teacher didn't teach us yet. she said we should do it on our own
pls i really need your help for this one. have tried all my best but i don't get it. my teacher didn't teach us yet. she said we should do it on our own
Answers
MathMate
If your teacher has not taught anything yet, then try the following, which works for anyone:
Make a table of the number of necklaces sold and the profit.
At $10 a necklace, she sells 20 a day with a profit of $4 each, so her net profit is $4*20=$80/day.
At $11 a necklace, she sells 18 a day with a profit of $5 each, so her net profit is $5*18=$90/day.
At $12 a necklace, she sells 16 a day with a profit of $6 each, so her net profit is $6*16=$96/day.
...
Continue this way until the profit drops, then take the highest profit.
If I were you, I would go for the $0.50 increase/decrease once the highest profit is known.
Post your answer for a check if you wish.
Make a table of the number of necklaces sold and the profit.
At $10 a necklace, she sells 20 a day with a profit of $4 each, so her net profit is $4*20=$80/day.
At $11 a necklace, she sells 18 a day with a profit of $5 each, so her net profit is $5*18=$90/day.
At $12 a necklace, she sells 16 a day with a profit of $6 each, so her net profit is $6*16=$96/day.
...
Continue this way until the profit drops, then take the highest profit.
If I were you, I would go for the $0.50 increase/decrease once the highest profit is known.
Post your answer for a check if you wish.
ted
at $19 a necklace, she sells 2 a day, so her net profit is $2.
is that right
is that right
MathMate
At $19 a necklace, her profit is $19-$6=$13 for each necklace she sells. So her net profit is $13*2 necklaces = $26.
But $26 is lower than $96 when she would sell them at $12 a necklace.
So continue with $13, $14, ... until the net profit goes down. Then choose the price that would give the highest profit.
But $26 is lower than $96 when she would sell them at $12 a necklace.
So continue with $13, $14, ... until the net profit goes down. Then choose the price that would give the highest profit.