Problema Solution
suppose that the manufacturer of a gas clothes dryer has found that, when the unit price is p dollars, the revenue R (IN DOLLARS) is
R(p)=5p^2+30,000p
What unit price should be established for the dryer to maximize revenue? What is the maximum revenue?
Answer provided by our tutors
we need to find the maximum of the parabolic function
R(p)=-5p^2+30,000p
R max = c - b^2/(4a) where a = -5, b = 30000, c =0
R max = - 30000^2/(4*(-5))
R max = $45,000,000.00 is the maximum revenue.
by solving -5p^2+30,000p = 45000000 we find
p = $3,000 the price of the dryer to maximize revenue.