Question

The Lots of Chocolate Bakery collected the data in the table below on the price of a dozen brownies, in dollars, and the number of dozens demanded per day. Dozens Demanded Price, in dollars 14 4.00 19 3.75 21 3.50 23 3.25 26 3.00 31 2.75 35 2.50

1. Find a price-demand function for the data where x is the number of dozens of brownies demanded per day and ?(?) represents the price at which people buy exactly ? dozen brownies per day.

2. Graph the data and this equation using Excel. Import the Excel graph into your project.

3. Determine the revenue function, ?(?), as a function of ?.

4. Determine the price that this bakery should charge to maximize the daily revenue.

5. If each dozen of brownies costs the bakery $1.50 to make, find the profit function, ?(?), as a function of ?.

6. Determine the price that this bakery should charge to maximize the daily profit

. 7. The price-demand function for this data can also be modeled by ?(?) = 5.64? −0.023? , 14 ≤ ? ≤ 40 where ? is the number of dozens of brownies demanded per day and ?(?) represents the price at which people buy exactly ? dozen brownies per day. Complete steps two through six with this new price-demand function.

8. If you owned The Lots of Chocolate Bakery, which price-demand function (from part 1 or part 7) would you use to determine the price of your brownies? Explain your answer using the information from the project.

Answer 1