SOLUTION: The owner of a resort offers an organization a 3-day vacation package promo for $5 000 per person if not more than 100 people will take the promo. However, he is willing to reduce
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Question 866743: The owner of a resort offers an organization a 3-day vacation package promo for $5 000 per person if not more than 100 people will take the promo. However, he is willing to reduce the cost per person by $25 for every person in excess of 100. How many people should take the promo in order for him to receive the largest revenue? Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! The owner of a resort offers an organization a 3-day vacation package promo for $5 000 per person if not more than 100 people will take the promo.
However, he is willing to reduce the cost per person by $25 for every person in excess of 100.
How many people should take the promo in order for him to receive the largest revenue?
:
Let x = no. of persons over 100
Let y = total revenue
:
y = (5000-25x)*(100+x)
FOIL
y = 500000 + 5000x - 2500x - 25x^2
A quadratic equation
y = -25x^ + 2500x + 500000
The axis of symmetry, x will give max revenue x = -b/(2a)
x =
x = +50
we can say 150 people will give max revenue
