Problema Solution
when priced at 30.00, a toy has monthly sales of 4000 units. For each 1.00 increase in price, sells will decrease by 100 units. Find the price that will maximize total revenue.
Answer provided by our tutors
Price: x
Sales: 4000-100(x-30) = 7000-100x
So
R = P*S = x(7000-100x)
R'= 7000-200x
When x = 35, R'=0, Revenue is max
So
the price that will maximize total revenue is 35.00