p. 610-612 18. Fred is helping his wife, Wilma, maximize profits on her Happy Ho
ID: 3116317 • Letter: P
Question
p. 610-612 18. Fred is helping his wife, Wilma, maximize profits on her Happy House Wife Cookies. If Wilma bakes 120 cookies, the cost is $63.53. If Wilma bakes 240 cookies, the cost is $106.88 Fred estimates Wilma can sell 120 cookies each week at a price of $0.80 each, but would have to lower her selling price to $0.55 to sell 240 cookies in the same time frame. To make the greatest profit, how many cookies should Wilma bake each week? Please werk all problens na/ See origi exam #) ..n--..". .. hava nnmnlated the exam.Explanation / Answer
Ans:
Step 1: Given,
Cost of baking 120 cookies = 63.53
Cost of baking 240 cookies = 106.88
Selling price when 120 cookies are sold each week = 0.8 each
Selling price when 240 cookies are sold each week = 0.55 each
Step 2: Profit = Selling Price - Cost Price
Cost of baking 120 cookies = 63.53
Selling price when 120 cookies are sold each week = 0.8 each
Total selling price for 120 cookies = 120*0.8 = 96
Profit when 120 cookies are baked in a week = 96 - 63.53 = 32.47
Step 3: Cost of baking 240 cookies = 106.88
Selling price when 240 cookies are sold each week = 0.55 each
Total selling price for 240 cookies = 240*0.55 = 132
Profit when 240 cookies are baked in a week = 132 - 106.88 = 25.12
Step 4: From step 2 and 3, we can see that
Profit is more when 120 cookies are baked and sold in a week
Hence, 120 cookies should be baked in a week to maximize profit
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.