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.