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Restaurant Profits Scenario

Restaurant Profits Scenario

You have been placed on a marketing and design team tasked with creating a menu for a swanky new restaurant. Your goal is to design a restaurant menu that will maximize profit.

Complete the task listed under the role.

Role #1 Drink Designer
You have 4 drinks to put on the menu: apple, banana, cherry, or dragon fruit. The cost for your restaurant to purchase each bottle of soda is as follows: apple: $4, banana: $3, cherry: $2, dragon fruit: $1. The number of bottles sold every day of each soda depends on the price you set in your menu. The demand for your soda decreases as the price increases. Here are the formulas for each:

a) bottles of apple sold = 1.0 x 101 – price
b) bottles of banana sold = 1.2 x 101 – price
c) bottles of cherry sold = 1.4 x 101 – price
d) bottles of dragon fruit sold = 1.6 x 101 – price

(Hint: graph each equation on a graph. Use the variable ‘x’ to represent price and ‘y’ to represent bottles of soda sold. What does the x axis represent and what does the y-axis represent?)

Determine the price of each soda that will give you maximum profit. Include your calculations and results.