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3 years ago

Currently, your masks sell for $1 each. At that price you are able to sell 6000

Mathematics

1 answer:

eimsori [14]3 years ago

5 0

Answer:

Revenue will increase if price of mask is increased.

Step-by-step explanation:

The current price of the mask is $1 per mask and there is expected demand of 6000 masks per week. If the company plans to increase the price the demand for the masks will decrease.

Revenue = 6000 * x

Total revenue will be $6,000 if the price of mask is $1. If price of mask increase by 10% then quantity will be declined to 5850 masks [6000 - 150].

New price = $ 1 * 110% = $1.10

Revenue = 5850 masks * $ 1.10 = $6,435.

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