The highest that the store should sell should be at $9.5 per burrito because if they sell at $9.5, then they will get 1,805,000 for a daily revenue (9.5 x 190,000 burritos). If they sell any higher, then their daily revenue will go down. For example, if they sell at $10 a piece, they can only sell 180,000 (as per the rule that for every $0.50 increase in price, they have to lessen their sales volume by 10,000). 10 x 180,000 is 1,800,000 which is their daily revenue if they sell at $10 which is less than what they can get if they sell at $9.5.
<span>In most cases, the company is not simply seeking a sale. rather, it wants to engage the customer over the long haul in a mutually profitable relationship. With this kind of goal, a company will have a higher chance of prosperity and stability in the long run.</span>
When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria : Trade-offs
<h3>What is trade-offs?</h3>
A trade-offs is when one must choose between two or more things, selecting the best option given available constraints. It a choice that must be made due to scarcity.
Trade-offs are also alternatives that must be given up when one choice is made rather than another.
Examples of Trade-offs includes :
- Role vs People.
- Job security vs Opportunity.
- Brand vs Scope.
Learn more about trade-offs here : brainly.com/question/7072776