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ivano_logy
Group Title
An electronics store sells an average of 60 entertainment systems per month at an average of $800 more than the cost price. For every $20 increase in the selling price, the store sells one fewer system. What amount over the cost price will maximize revenue?
 2 years ago
 2 years ago
ivano_logy Group Title
An electronics store sells an average of 60 entertainment systems per month at an average of $800 more than the cost price. For every $20 increase in the selling price, the store sells one fewer system. What amount over the cost price will maximize revenue?
 2 years ago
 2 years ago

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jayz657 Group TitleBest ResponseYou've already chosen the best response.0
c = cost price s = selling price n = number of systems sn = total revenue sn  c = income/profit/loss s = (c+800) n = 60 c? if s goes up 20 n = n 1 sorry this is all i got so far, hope it helps in any way
 2 years ago

Algebraic! Group TitleBest ResponseYou've already chosen the best response.0
Q = 60 + (800P)/20 R= QP = (100 P/20)P so find the max of R = P^2 /20 +100P and find the Price at that max... (set the derivative equal to zero and solve for P)
 2 years ago

apple_pi Group TitleBest ResponseYou've already chosen the best response.1
First thing you want is number sold in terms of price sold at lets call number sold n, and price sold p \[n = 60\frac{p800}{20}\] \[n = 60+\frac{800p}{20}\] revenue (r) = number sold x price sold \[r = p(60+\frac{800p}{20})\] \[r = 60p+40p\frac{p^2}{20}\] \[r = 100p  \frac{p^2}{20}\] To find the max, we find the stationary point (we know since this is a quadratic, and that the coefficient of p^2 is negative the max is the stationary point) \[\frac{dr}{dp} = 100 \frac{2p}{20}\] \[\frac{dr}{dp} = 100 \frac{p}{10}\] \[0 = 100  \frac{p}{10}\] \[0 = 1000  p] \[p = 1000]
 2 years ago

ivano_logy Group TitleBest ResponseYou've already chosen the best response.0
Thank you very much! I finally understand it.
 2 years ago

apple_pi Group TitleBest ResponseYou've already chosen the best response.1
that's great :)
 2 years ago
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