Zib

06-19-2011, 11:54 AM

Copies of Mr. McCallum's old quizzes sell for $10 each. At this price, 200 copies will be sold. An informal survey indicates that for each $1 that the price is increased, 10 less quizzes will be sold.

a) What price should the quizzes be sold for to maximize revenue? Answer: $15

b) If a revenue of $2160 is generated, what was the cost of a single copy? Answer: $12

This is what I tried to do:

Price: (10+x) Quantity: (200-10x)

Revenue=(10+x)(200-10x)

=10x^2-100x-2000

=10(x-5)^2-4250

Therefore a $5 price increase will maximize revenue.

Help would be much appreciated.

a) What price should the quizzes be sold for to maximize revenue? Answer: $15

b) If a revenue of $2160 is generated, what was the cost of a single copy? Answer: $12

This is what I tried to do:

Price: (10+x) Quantity: (200-10x)

Revenue=(10+x)(200-10x)

=10x^2-100x-2000

=10(x-5)^2-4250

Therefore a $5 price increase will maximize revenue.

Help would be much appreciated.