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April 20, 2014

April 20, 2014

Posted by **Anonymous** on Tuesday, October 25, 2011 at 7:26pm.

The manufacturer of a CD player has found that the revenue R (in dollars) is R(p)= -4p^2+1280p, when the unit price is p dollars. If the manufacturer sets the price p to maximize revenue, what is the maximum revenue to the nearest whole dollar?

- introductory Algebra -
**drwls**, Tuesday, October 25, 2011 at 7:44pmFind the value of p that maximizes R(p).

Since you don't know calculus yet, try completing the square.

R(p) = -4[p^2 -320 p + (160)^2] + 4*(160)^2

= 25,600 - 4(p - 160)^2

Maximum revenue occurs at p = 160.

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