Calc Help

An agency charges $15 per person for a trip for groups of no less than 30 people. But for each person above the 30, the charge (for everyone!) will be reduced by $0.15. Write a revenue function for the agency usin x as number of people above 30. What size group will maximize the total revenue for the agency if the trip is limited to at most 50 people?

I will be happy to critique your thinking.

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asked by Rob
  1. Since the agency only takes groups of no less than 30 people, the minimum profit for a single trip is $15*30 people.

    Let x be the number of people above 30.

    The number of people is then 30+x.
    The [Total Revenue] is equal to the
    [price charged for each person] times the [number of people]

    [price charged for each]=$15-.15*x
    Notice if x=0, then the price charged is equal to $15 and the number of people in group is 30, which is the minum group size the company will allow for a trip.

    Thus our Total Revenue Function is

    [Total Revenue] =
    [price charged for each person]*[number of people]

    =($15-$.15*x)*(30+x)

    R(x)= ($15-$.15*x)*(30+x)=450+10.5x-.15*x^2 after foiling everything out.

    R'(x)=10.5-2*.15*x is the derivative of the Revenue function and the Revenue will be maximized at a value of x for which R'(x)=0.

    Setting R'(x)=0 implies 10.5-2*.15*x=0, which implies that x=35 people. The group size was constrained to be at least 30 people and at most 50 people, and since the number 35 is between 30 and 50, then a group size of 35 people is a valid solution for this problem: according to the revenue function R(x),and the constraints on groups sizes given above above, the company will maximize its profit when it has groups of size 35. Now I must go breath.

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    posted by Ed

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