You run a small furniture business. You sign a deal with a customer to deliver up to 500 chairs, the exact number to be determined by the customer later. The price will be $120 per chair up to 400 chairs, and above 400 the price will be reduced by $0.25 per chair (on the whole order) for every additional chair over 400 ordered. What is the largest revenue your company can make under this deal?

I've found the minimum to be zero for this problem because they could sell no chairs at all and from what I can deduct from the problem the maximum they can make should be selling 400 chairs at $120 each which would be $48000 but my online turn in keeps telling me that's wrong and I don't understand why that is, please help.

To determine the largest revenue your company can make under this deal, we need to consider the different scenarios based on the number of chairs ordered by the customer.

Let's break it down step by step:

1. If the customer orders no chairs (0 chairs), the revenue will be 0 since your company sells no chairs in this scenario.

2. If the customer orders up to 400 chairs (0 < number of chairs ≤ 400), the price per chair will be $120. In this case, the maximum revenue you can make is attained when the customer orders the maximum allowable number of chairs, which is 400. Therefore, the revenue would then be 400 * $120 = $48,000.

3. If the customer orders more than 400 chairs (number of chairs > 400), the price per chair will be reduced by $0.25 for every additional chair above 400. For example, if the customer orders 500 chairs, the price reduction will be (500 - 400) * $0.25 = $25. So, the price per chair in this case would be $120 - $25 = $95. The revenue will then be 500 * $95 = $47,500.

Therefore, the largest revenue your company can make under this deal is $48,000 if the customer orders up to 400 chairs, and the revenue decreases if the customer orders more chairs.

If your online turn-in system is indicating that this answer is incorrect, I suggest reviewing the problem statement or reaching out to your instructor or classmates for clarification.

I answered it in your previous post of this question