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storchak
2 months ago
6

To produce espressos, a coffee shop has fixed costs of 200 dollars each day and variable costs of one dollar per espresso. The n

umber of espressos that the coffee shop sells on a given day depends linearly on the price of each espresso: If the price is $1.00, then they sell 200 espressos, and if the price is $2.00, then they sell 100 espressos. What is the choice of price that will maximize their profit?

Business
1 answer:
stepan [3.5K]2 months ago
7 0

Response

The solution and methods for the problem are included in the upcoming image.

Clarification

Please take into account the information supplied by the task. If you have any inquiries, feel free to contact me again. All the problems are addressed on a single page with references to the formulas.

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Justification:

Below is the formula intended to be entered in cell C8:

=IF(C5>35000,IF(C5>25000<35000,IF(C5<25000,0.05*C5),0.04*C5),0.02*C5)

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