Question 1140520
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Suppose the company decreases the price by $0.10 x times from the current cost of $2.40; the number of bags sold will increase by 400 x times from the current 4000.<br>
Then the cost per bag will be $2.40 minus $0.10 x times; the number of bags sold will be 4000 plus 400 x times.<br>
The total revenue is then<br>
{{{(2.40-.10x)(4000+400x)}}}<br>
Use any of a number of methods to find the maximum revenue.<br>
Inspection shows the expression for total revenue will be a quadratic with a negative leading coefficient, so there will be a maximum value.<br>
Use algebraic methods for finding the maximum value of a quadratic function;
or use calculus;
or graph the revenue function on a graphing calculator....