SOLUTION: You sell widgets for $10 and have 500 customers. For every .25 cents you raise the price you will lose 2 customers. At what selling price would you have the most revenue and what w

Question 964513: You sell widgets for $10 and have 500 customers. For every .25 cents you raise the price you will lose 2 customers. At what selling price would you have the most revenue and what would that revenue and selling price be ? Also how many customers would you have ?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You sell widgets for $10 and have 500 customers. For every .25 cents you raise the price you will lose 2 customers. At what selling price would you have the most revenue and what would that revenue and selling price be ? Also how many customers would you have ?
-------
Revenue = (# of units sold)(price per unit)
-----
Equation:
R = (500-2x)(10+0.25x)
R = 5000+125x -20x -0.5x^2
----
R = (-1/2)x^2 +105x + 5000
-----
Vertex:: (105,10512.50)
----------
At what selling price would you have the most revenue?
Ans: $10.00+0.25*105 = $36.25
--------------------
and what would that revenue be?
Ans: $10512.50
---------------------
Also how many customers would you have ?
Ans: 500 - 2*105 = 290
--------------
Cheers,
Stan H.
--------------

RELATED QUESTIONS
assume that you sell 65 sandwiches for $1 each. if you lose 8 customers each time you... (answered by ankor@dixie-net.com)

Hello, I have looked at this prblem for almost two hours and I can't figure how to form... (answered by scott8148)

You will solve real-world problems related to physics and business by using quadratic... (answered by ikleyn,MathTherapy)

Carlos owns a vending machine in a bowling alley. He currently sells 600 cans of soda per (answered by ankor@dixie-net.com)

assume that i sell 66 sandwiches when selling them for $1. if i lose 5 customers each... (answered by ankor@dixie-net.com)

Lucy’s Perfect Pizza sells every pizza for $12. Lucy currently has 400 customers per... (answered by Theo,ikleyn)

I have a word problem. "A tour bus serving 400 customers a day charges $5 per person.... (answered by jsmallt9)

Could you please help me solve this question. I did some of it. Thank you It is not... (answered by ankor@dixie-net.com)

Suppose you have a lemonade stand, and when you charge $1 per cup of lemonade you sell 50 (answered by stanbon,Mathtut,josmiceli)