Posted by **john** on Tuesday, March 15, 2011 at 2:52am.

When priced at 300 pesos each, a toy has an annual sales of 4000 units. The manufacturer estimates that each 10 pesos increase per unit will decrease the sales by 100 units. Find the unit price that will maximize the total revenue.

- algebra -
**bobpursley**, Tuesday, March 15, 2011 at 9:29am
sales=4000-100((p-300)/10 where p is the price.

sales=4000-10p+3000

revenue=sales*p= p(7000-10p) so revenue has zeroes at p=0 and p=700, so a max occurs at p=350

check all my math, I did it in my head.

## Answer this Question

## Related Questions

- finance - FF has an annual credit sales of $250,000 units with an average ...
- Finance - What is the projects initial outlay? Should the project be accepted ...
- accounting - Anthony Company uses a perpetual inventory system. It entered into ...
- accounting - A company that uses perpetual inventory system made the following ...
- accounting - A company that uses perpetual inventory system made the following ...
- Algebra - Nick budgets from 300 pesos to 900 pesos for trees and/or bushes to ...
- accounting - BDH Corporation, which makes only one product, Kisty, has the ...
- finance - Winnebagel Corp. currently sells 29,400 motor homes per year at $44,...
- finance - The capital structure of William Corporation limited consists of an ...
- Finance - ER Medical Supplies had sales of 2,000 units at $160 per unit last ...

More Related Questions