The owner of a small bakery shop is assessing the shops reve

The owner of a small bakery shop is assessing the shops reve - GED Prep

Question

The owner of a small bakery shop is assessing the shop's revenue against its costs to find ways to maximize profits. The shop incurs fixed expenses of $50.00 per day and variable costs of $0.25 per loaf of bread sold.

The bakery shop's revenue and profit depend on the sales price of the bread. The daily revenue is given in the graph below, where x is the sales price of a loaf of bread and y is the expected revenue at that price.

The equation for daily profit, P dollars, when the sales price of a loaf of bread is x dollars is given by: 𝑃=−620+830𝑥−72.50P=−620+830x−72.50

The owner is also negotiating with a supplier for the purchase of flour. A supplier offers 500 pounds of flour for $700.00, which would be a saving of $50.00 compared to what the shop is currently paying for the same quantity.

To the nearest cent, what is the price per pound the bakery shop owner is currently paying for flour?