kristin owns a bakery called kristins cakes n such and is considering lowering the price of her cakes…

kristin owns a bakery called kristins cakes n such and is considering lowering the price of her cakes. kristin polls her customers and determines that she can sell 100 cakes each week when she charges $25 each. she also discovers that for every $1 decrease in the price of the cake, she will sell 5 more cakes. the graph below represents kristins projected weekly revenue for each decrease in price. at what price should kristin sell her cakes in order to reach her maximum potential revenue? $□

kristin owns a bakery called kristins cakes n such and is considering lowering the price of her cakes. kristin polls her customers and determines that she can sell 100 cakes each week when she charges $25 each. she also discovers that for every $1 decrease in the price of the cake, she will sell 5 more cakes. the graph below represents kristins projected weekly revenue for each decrease in price. at what price should kristin sell her cakes in order to reach her maximum potential revenue? $□

Answer

Answer:

$22.5$

Explanation:

Step1: Identify the price - decrease value for max revenue

From the graph, the maximum revenue occurs at a price - decrease of $2.5$ dollars.

Step2: Calculate the optimal selling price

The original price is $25$ dollars. The optimal selling price $P=25 - 2.5$. $P = 22.5$ dollars.