Answer to Question #11716 in Quantitative Methods for nina omar

Question

The Towne Food Corporation has bought exclusive rights to sell chocolate bars in a local sports arena. The fee it paid for this concession was $1,000 per game. The cost (excluding this fee) of obtaining and marketing each candy bar is 10 cents. The demand schedule for candy bars in this arena is as follows:
Price per candy bar Thousands sold
(cents) per game
20 10
25 9
30 8
35 7
40 6
45 5
50 4
Assume that prices must be a multiple of a nickel.
a) What price should the Towne Corp. charge for a candy bar?
b) What is the maximum amount that they should pay for the concession for a