Reference no: EM132994194

Question - Part 1 - Mary sells T-shirts in a stall at the shopping centre. When she charges £15 per T-shirt she does not sell anything, however she noticed that every time she reduces the selling prince by £1, sells 15 more t-shirts per hour. A T-shirt cost £4.50 to make and she is charged £130 a day for her stall. Mary opens her stall from 10am to 8pm

a. Write the equation to calculate the maximum profit

b. Using the equation write in a table the price and profit for price ranging from £15 to £3

c. Plot a graph and draw a diagram to represent the profit

d. What is the maximum possible profit? What should be the selling price to achieve it?

Part 2 - Lisa sells cherries on the market. On her first day, she charges £4 per punnet and sold 20 punnets. On her second day, she charged £3 per punnets and sold 60. On her third day, she charged £2 and sold 100 and when she charged £1 she sold 140 punnets. She thinks there is a relationship between price and quantity sold and asked you for your help. She told you that shebuys the cherries for £0.65 and the stall cost her £60 a day. She also said that she would not mind charging £1.50 or £2.50 but she would not charge £1.75 or £2.25 as it is not practical.

a. Use a table to show the relationship between price and profit/loss

b. Draw a diagram to represent price and profit/loss

c. What is the optimal selling price?