Expert: Paul Klarreich - 3/5/2007

Question
Hi,

I am having a problem solving this, and I hope you can help me. I am a precalculus student, but this appears to be a calculus-solvable problem.

"The French bakery down the street sells 1000 chocolate chip cookies each week at 50 cents apiece. The owner of the bakery would like to increase revenue, and is convinced that for each 10-cent increase, the bakery will sell 70 fewer cookies each week. He comes to you with this question:
At what price will the cookies bring in maximum revenue? Include an equation for number of cookies sold as a function of price and revenue as a function of price.

I don't even know where to start this, especially the two last equations. Any help is much appreciated!

Thank you!

Answer
Hi, Alana,

One of the reasons I don't answer questions marked 'Private' is so that other 'students' can find useful solutions among the published answers. [Don't worry -- I know you didn't do that.]

So check out:

http://en.allexperts.com/q/Advanced-Math-1363/Maximum-minimum-problem.htm

which I answered a few days ago.  I think it is your problem, perhaps with different numbers (and British currency.)

If that doesn't do it for you, send a followup.