SOLUTION: Ace Cruise Line offers an inland waterway cruise to a group of 50 people for a price of R30 per person, but it reduces the price per person by R0.50 for each additional person abov
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-> SOLUTION: Ace Cruise Line offers an inland waterway cruise to a group of 50 people for a price of R30 per person, but it reduces the price per person by R0.50 for each additional person abov
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Question 1073148: Ace Cruise Line offers an inland waterway cruise to a group of 50 people for a price of R30 per person, but it reduces the price per person by R0.50 for each additional person above the 50. How many people will provide maximum revenue for the cruise line? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! The revenue is people* price
The price per person drops by 0.5 for each additional person
(50+x)(30-0.5x) is the revenue
to maximize, multiply it out to get 1500+5x-.5x^2
The vertex is at x=-b/2a, or x=-5/-1=5
The maximum is at 55*27.50=1512.50
at 56, it would be 56*27=1512.
55 people would be the maximum revenue.
