A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • 5 years ago

A real estate office manages 50 apartments in a downtown building. When the rent is $900 per month, all the units are occupied. For every $25 increase in rent, one unit becomes vacant. On average, all units require $75 in maintenance and repairs each month. How much rent should the real estate office charge to maximize profits? P(x) = R(x) - C(x) This question I am stuck. I don't know how I would formulate the equations for revenue and cost. :|

  • This Question is Closed
  1. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    50(75) are the costs....$3750

  2. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    or is that only 75 per unit rented?

  3. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    the rate of change is linear.... 900,50 925,49..... for every 25 over we drop by 1 50=900/25+b 5=90/25+b b = 5 - 90/25 = 7/5 rooms = cost/25 +(7/5) ??

  4. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    900,50; and 925,49 50 + 900/25 = b lol i forgot to negate the slope

  5. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    50+36 = 86 y = -x/25+86

  6. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    that is our demand function;.....

  7. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    which can be rewritten as: D(x) = (2150-x)/25

  8. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    R * D(x) = total revenue and that has to be at least equal to 3750 to break even right?

  9. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    since R is the rent charged and x = rent in our demand function; lets do this.. x(2150-x) --------- >= 3750 25

  10. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    2150x - x^2 >= 93750 0 >= x^2 -2150x + 93750 +2150/2 is the x amount at the max :) 1075 = x

  11. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    lets see if that amount works out....

  12. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    2150-1075 ---------- = rooms rented 25 2150 1075 ----- 1075/25 = 43 43(1075)>= 3750 1045 43 ----- 4180 3135 ------- $44935 >= 3750...well, we make a profit at least :)

  13. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    44935 3750 ------ 41185 in profits

  14. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    we can trey that with 25 higher and 25 lower to see if we are right lol

  15. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    2150-1100 ---------- = rooms rented 25 2150 1100 ----- 1050/25 = 42 ...really? i had to figure it out that way lol...im an idiot :) of course 25 higher is one less lol

  16. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    1100 42 ----- 4400 2200 ------- 46200 ......................... see? 1050 44 ----- 4200 4200 ------ 46200

  17. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    DOH!!...now wheres my mistake lol

  18. amistre64
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    1075 43 ----- 4300 3225 ------ 46225 ...thats better lol, i forgot how to multiply

  19. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.