SOLUTION: A telephone company in a town has 1000 subscribers on its list and collects a fixed charge of Rs.400 per subscriber per year. The company proposes to increase the annual subscripti

Question 457703: A telephone company in a town has 1000 subscribers on its list and collects a fixed charge of Rs.400 per subscriber per year. The company proposes to increase the annual subscription and it is believed that for every increase of Re. 1, one subscriber will continue the service. Find what increase will bring maximum revenue to the company.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A telephone company in a town has 1000 subscribers on its list and collects a fixed charge of Rs.400 per subscriber per year.
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The company proposes to increase the annual subscription and it is believed that for every increase of Re. 1, one subscriber will continue the service.
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Find what increase will bring maximum revenue to the company.
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Normally you get fewer subscibers when you increase subscription cost.
Note: I don't know how Re relates to Rs.
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Equation based on your statement:
Let # of additional subscribers be "x".
1000+x = (400Rs+xRe)
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If Re is the same as Rs the equation is a contradiction.
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Please take another look at your problem.
Please explain currency equivalents if you are
going to refer to several different currencies.
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Cheers,
Stan H.
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