Chuck and Sarah are reselling spy watches which they bought at 75 dollars each from an unnamed supplier. Originally, they are willing to sell each watch at 150 dollars. At this price, only 50 people are willing to buy the product. To be able to increase sales and maximize profit, the two did a little survey and found out that for every dollar reduction in the price of a watch, 10 more people are willing to buy. At what price should the two sell each spy watch in order to realize the maximum possible profit? What is the maximum profit?

Answer rating: 100% (QA)

Answer 1 In order to maximize the profit Chuck and Sarah should find the point at which the total re... View the full answer