SOLUTION: The manager of big box store has found that if the price of a pillow is p(x)=100-x/8 then x pillows will be sold. The expression for the total revenue from the sale of x pillows is

Algebra ->  Quadratic Equations and Parabolas  -> Quadratic Equation Customizable Word Problems -> SOLUTION: The manager of big box store has found that if the price of a pillow is p(x)=100-x/8 then x pillows will be sold. The expression for the total revenue from the sale of x pillows is      Log On


   

Question 976498: The manager of big box store has found that if the price of a pillow is p(x)=100-x/8 then x pillows will be sold. The expression for the total revenue from the sale of x pillows is
R(x) = 100x-x^2/8 . Find the number of pillows that will produce maximum revenue.
a) 800 pillows

b) 400 pillows
c) 440 pillows

d) 380 pillows
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
Maximizing revenue:
100x-x^2/8= maximum. This will be a negative quadratic, and the vertex is maximum.

vertex is -b/2a = -100/-1/4=400
That is the x-value of pillows.
400 pillows--revenue is (40,000-20,000)=20,000
399 pillows--revenue is (39900-19,900.125)=19999.875
401 pillows--revenue is (40100-20100.25)=19999.75
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