QuestionAt the Mini Market, as the price of milk drops, sales increase. On an average day, a 4-L bag of milk costs $\$ 3.90$, and the store sells an average of 120 bags. For each $\$ 0.10$ reduction in price of a 4-L bag, sales increase by 20 bags per day. The price and value of sales can be modelled as follows, where n is the number of $\$ 0.10$ price reductions.
Price, in dollars: 3.90 - 0.10n Number of bags: $120+20 n$
The total revenue is the product of the price and the number of bags sold. Find how many price reductions will result in revenue of $\$ 700$.

Studdy Solution
Verify the solution by checking which value of $n$ results in a revenue of \$700.
For $n = 4$:
Price per bag: $3.90 - 0.10 \times 4 = 3.50$
Number of bags: $120 + 20 \times 4 = 200$
Revenue: $3.50 \times 200 = 700$
For $n = 29$:
Price per bag: $3.90 - 0.10 \times 29 = 1.00$
Number of bags: $120 + 20 \times 29 = 700$
Revenue: $1.00 \times 700 = 700$
Both $n = 4$ and $n = 29$ result in a revenue of \$700.
The number of price reductions that result in revenue of \$700 are \( n = 4 \) and \( n = 29 \).