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  • 5 years ago

the sticker warehouse sells rolls of stickers for $4.00 each. the average custiomer buys six rolls of stickers. the owner finds that for every $0.25 decrease in price , the average customer buis an additional roll. a) with how many price reductions will the revenue per customer be $30? b) what is the maximum predicted sales revenue per customer? with how many price reductions will this occur?

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  1. gw2011
    • 5 years ago
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    A) 4 price reductions. B) The maximum predicted sales revenue per customer is $30.25 which occurs with 5 price reductions. As a matter of interest, the $30 revenue per customer also occurs with 6 price reductions but this happens after reaching the maximum predicted revenue per customer of $30.25.

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