SOLUTION: A company sells widgets. When they price them at $30 each they can sell at $140 per day. Whenever they raise the price by %$1 they sell $136 per day. If they lower the price by
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Question 1040616: A company sells widgets. When they price them at $30 each they can sell at $140 per day. Whenever they raise the price by %$1 they sell $136 per day. If they lower the price by a dollar they sell 144 per day. Using the pattern, what price should be charged in order to maximize the total revenue(sales dollars) Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! For each dollar price raised, the number sold decreases by 4.
For each dollar price lowered, the number sold increases by 4.
(30+x)(140-4x) would be the price*number factors.
4200+140x-120x-4x^2
-4x^2+20x+4200=0
the x value of the vertex is -b/2a or -20/-8 or 2.5
32.5 dollars and 130 widgets per day is maximum, or $4225
check with 33 dollars and 128 widgets $4224
or with 32 dollars and 132 widgets $4224
Graph is the product as a function of x.
