Question

Ali wanted to figure out the selling price for the custom paperweights he planned to sell. He found that at a price of $5.00, he could sell 20 units; at a price of $10.00, he could sell 15 units; and at a price of $20.00, he could sell 5 units. Based on these numbers, how could Ali make the maximum profit?

Answer 1

Based on the given data, Ali would maximize his profit by setting the selling price at $10.00, as it generates the highest total revenue.

At a price of $5.00, he can sell 20 units, resulting in a total revenue of $100.00 ($5.00 x 20).

At a price of $10.00, he can sell 15 units, resulting in a total revenue of $150.00 ($10.00 x 15).

At a price of $20.00, he can sell 5 units, resulting in a total revenue of $100.00 ($20.00 x 5).

Comparing these scenarios:

$5.00 price: Total revenue of $100.00

$10.00 price: Total revenue of $150.00

$20.00 price: Total revenue of $100.00

Therefore, based on the given data, Ali would maximize his profit by setting the selling price at $10.00, as it generates the highest total revenue.