Profit if in problem the mountain bikes cost the shop 200, Operation Management

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Profit if in problem the mountain bikes cost the shop 200

Profit If in Problem the mountain bikes cost the shop $200 each, at what selling price will MMR II's profit be a maximum?

Problem

Revenue MMR II Extreme Bike Shop sells 54 basicstyle mountain bikes per month at a price of $385 each.

Market research indicates that MMR II could sell 10 more of these bikes if the price were $25 lower. At what selling price will MMR II maximize the revenue from these bikes?

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Operation Management: Profit if in problem the mountain bikes cost the shop 200

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Operation Management: Profit if in problem the mountain bikes cost the shop 200

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