SOLUTION: An ice cream shop sells 150 vanilla ice cream cakes per month at a price of $40 each. A customer survey indicates for each $1 decrease in price, sales will increase by 5 cakes. D

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Question 1202839: An ice cream shop sells 150 vanilla ice cream cakes per month at a price of $40 each. A customer survey indicates for each $1 decrease in price, sales will increase by 5 cakes.
Determine a revenue function based on the number of price decreases.
Determine the marginal revenue for the revenue function developed in part a).
When is the marginal revenue function equal to zero? What is the total revenue at this time? How can the owners use this information?
Answer by josgarithmetic(39620)   (Show Source): You can put this solution on YOUR website!
PRICE       HOW MANY         COST
 40          150
 40-1        150+5
 40-2*1      150+2*5
 40-3*1      150+3*5       (40-3*1)(150+3*5)
.
.
.
 40-n       150+5n        (40-n)(150+5n)

One way to continue this way is to use n for how many $1 increases, and look at the
cost expression for finding the maximum revenue. (Quadratic in n).
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