Candy SalesMath brain teasers require computations to solve.Mary Jane, the confectioner with two first names, looked up her fellow candy maker in the phone book. "Cracker, Jack" was the listing, and during the ensuing phone conversation they decided to jointly market their products in a single multi-pack. They quickly discovered that the normal rules of economics applied, as when they reduced their price, they were able to sell more of their product, and vice versa.
When they priced a box of candy at $5.95, they realized a profit of $1.75 per box and sold on average 100 boxes per week. For each $0.20 reduction in price, their sales increased by 25 boxes per week. What did they finally determine was the optimum price at which to sell their wares to produce the maximum weekly profit? (Assume that changes in price have no effect on the cost of producing or marketing the candy.) What Next?
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