Problema Solution
Bob owns an apartment building with 60 suites. He can rent all the suites if he charges a monthly rent of $200 per suite. At a higher rent, some suites will remain vacant. For each increase in rent of $5, one suite remains vacant.
a.) What monthly rent will maximize the total revenue?
b.) What is the maximum revenue (per month). (Do not use a comma in your answer.)
Answer provided by our tutors
Bob owns an apartment building with 60 suites. He can rent all the suites if he charges a monthly rent of $200 per suite. At a higher rent, some suites will remain vacant. For each increase in rent of $5, one suite remains vacant.
a.) What monthly rent will maximize the total revenue?
200+ 60*5= 200 + 300= 500 $
b.) What is the maximum revenue (per month).
200*60= 12000 $