SOLUTION: Steve owns a hotdog stand. He has found that sales of hot dogs average 42,000 hot dogs a year when the hot dogs sell for $2.50 each. For each 50 cent increase in the price, the num
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Question 440190: Steve owns a hotdog stand. He has found that sales of hot dogs average 42,000 hot dogs a year when the hot dogs sell for $2.50 each. For each 50 cent increase in the price, the number of hotdogs sold drop by 5000. What price per hot dog should Steve charge to realize the maximum revenue?
A. $1.70
B. $4.20
C. $3.35
D. $3.60
You can put this solution on YOUR website! Let = the number of cent increases in price
Let = revenue
given: (in cents)
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This is a parabola with a maximum, since the
coefficient of is minus.
The max is at where is the number of cent increases in price, cents is the increase over $2.50 that
Steve should allow
He should charge $3.35 per hot dog
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You can check this by putting , and into
and seeing ir peaks at
