document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1032035>Question 1032035</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Spartanland has a stand that sells souvenir hats. Last year the stand charged $5 each, and they sold 150. they want to increase the price this year, and they expect to lose 10 sales for each $1 increase. The sales revenue, R, in dollars, generated by selling the hats is predicted by the function: R = (5 + p) (150 - 10p), where p is the price increase in dollars </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #646733 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=646733\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Spartanland has a stand that sells souvenir hats. Last year the stand charged $5 each, and they sold 150. they want to increase the price this year, and they expect to lose 10 sales for each $1 increase. The sales revenue, R, in dollars, generated by selling the hats is predicted by the function: R = (5 + p) (150 - 10p), where p is the price increase in dollars <BR>\n" );
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document.write( "The usual question on this type of problem is to maximize Revenue.<BR>\n" );
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document.write( "R = 5*150 -50p + 150p - 10p^2<BR>\n" );
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document.write( "R = -10p^2 + 100p + 750<BR>\n" );
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document.write( "Maximum R occurs when p = -b/(2a) = -100/(2*-10) = 5<BR>\n" );
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document.write( "To maximize revenue increase the price by $5<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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