Problema Solution
The revenue R received for selling x stereos is given by the formula
R=-(x^2/3)+70x-800.
How many stereos must be sold to obtain the maximum revenue?
Find the maximum revenue.
Answer provided by our tutors
The equation is ambiguous, as "(x^2/3)" can be interpreted as either "(x^(2/3))" or "((x^2)/3)". A parabolic equation should be accepted as "((x^2)/3)".
Graphing the equation allows one to see how the revenue 'R', maximizes when setting 'x' equal to the maximum value:
R = -((x^2)/3)+70x-800
R= -(1/3)(x-105)^2 + 2875
So x=105 will maximize the revenue since revenue tails off whenever x>105 or x<105.