Question 992532: an electronic store sells about 70 of a new model of digital cameras per month at a proce of 320$ each. for each 20$ decrease in price, about 5 more cameras per month are sold. write a function that models the revenue. How many times should they lower the price by 20$ to maximize revenue. What price should they sell the camera to maximize revenue. How many cameras will they sell when they maximize revenue. What is the maximum revenue.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! an electronic store sells about 70 of a new model of digital cameras per month at a proce of 320$ each. for each 20$ decrease in price, about 5 more cameras per month are sold. write a function that models the revenue. How many times should they lower the price by 20$ to maximize revenue. What price should they sell the camera to maximize revenue. How many cameras will they sell when they maximize revenue. What is the maximum revenue.
----
Revenue = (# of units sold)(price per unit)
-----
R(x) = (70+5x)(320-20x) = -100x^2 + 200x + 320*70
----
R'(x) = -200x + 200
-----
Solve for "x"::
-200x + 200 = 0
x = 1
----
Ans: To maximize Revenue
Sell at 320-20 = $300 per unit
# of units sold will be 70+5 = 75
----------
Cheers,
Stan H.
|
|
|
