How much should the student center charge

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Reference no: EM131268949

Maximum revenue:-

A university student center sells 1,600 cups of coffee per day at a price of $2.40.

(A) A market survey shows that for every $0.05 reduction in price, 50 more cups of coffee will be sold. How much should the student center charge for a cup of coffee in order to maximize revenue?

(B) A different market survey shows that for every $0.10 reduction in the original $2.40 price, 60 more cups of coffee will be sold. Now how much should the student center charge for a cup of coffee in order to maximize revenue?

Reference no: EM131268949

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