Question

Complete the table for different values of X in the polynomial expression -7x^2+32x+240. Then, determine the optimal price that the taco truck should sell it’s tacos for. Assume whole dollar amounts for the tacos.

Answer 1

Answer:

$6

Step-by-step explanation:

Tico’s taco truck is trying to determine the best price at which to sell tacos, the only item on the menu, to maximize profits. The taco trucks owner decided to adjust the price per taco and record data on the number of tacos sold each day with each new price. When the taco truck charges $4 for a taco, it sells an average of 60 tacos in one day. With every $1 increase in the price of a taco, the number of tacos sold per day decreases by 7.

The owner can calculate the daily revenue using the polynomial expression (-7x²+32x+240),

where x is the number of $1 increases in the taco price. In this activity, you’ll interpret and manipulate this expression and the scenario it represents.

x is number of $1 increments above the initial price of $4.  (x=0 means a price of $4, x=1 means a price of $5, etc.)

The revenue is -7x²+32x+240.  The average number of tacos sold is the revenue divided by the price.

For example, if x = 0, then the taco price is $4, the revenue is $240, and the number of tacos sold is 60.

If x = 1, then the taco price is $5, the revenue is $265, and the number of tacos sold is 53.

Each time x increases by 1, the number of tacos sold decreases by 7.

Continuing:

$\left[\begin{array}{cccc}Value\ of\ x&Taco\ Price\ (\ )&Average\ Number\ of\ Tacos\ Sold&Daily\ Revenue\ (\ )\\0&4&60&240\\1&5&53&265\\2&6&46&276\\3&7&39&273\\4&8&32&256\\5&9&25&225\\6&10&18&180\end{array}\right]$

The optimal price is $6.  At this price, the revenue is a maximum at $276.