document.write( "Question 1097010: A health club currently charges its 1900 clients monthly membership dues of $45. The board of directors decides to increase the monthly membership dues. Market research shows that each $1 increase in dues will result in the loss of 3 clients. How much should the club charge each month to optimize the revenue from monthly dues? \n" ); document.write( "
Algebra.Com's Answer #711453 by ankor@dixie-net.com(22740)![]() ![]() You can put this solution on YOUR website! A health club currently charges its 1900 clients monthly membership dues of $45. \n" ); document.write( " The board of directors decides to increase the monthly membership dues. \n" ); document.write( " Market research shows that each $1 increase in dues will result in the loss of 3 clients. \n" ); document.write( "How much should the club charge each month to optimize the revenue from monthly dues? \n" ); document.write( ": \n" ); document.write( "let x = no. of $1 increases, and -3x = the no. of client decreases \n" ); document.write( "Revenue = price * no. of clients \n" ); document.write( "R(x) = (45 + x)(1900 - 3x) \n" ); document.write( "FOIL \n" ); document.write( "R(x) = 85500 - 135x + 1900x - 3x^2 \n" ); document.write( "a quadratic equation \n" ); document.write( "y = -3x^2 + 1765x + 8550 \n" ); document.write( "The max y (revenue) occurs on the axis of symmetry. x = -b/(2a) \n" ); document.write( "x = \n" ); document.write( "x = 294 \n" ); document.write( "Max revenue occurs when 294 + 45 = $339 a month are the dues \n" ); document.write( "then the no. of clients: 1900 - 3(294) = 1018 clients \n" ); document.write( ": \n" ); document.write( ": \n" ); document.write( "Not a realistic scenario! \n" ); document.write( " |