Precalculus 11 Word problem- Fundraising

[bonnieerika]

Hi, I don't understand what this question is asking and I have idea how to do it.. any help is very much appreciated! What does it mean to "maximize the revenue"?

The Club sells sweatshirts as a fundraiser. They sell 1200 shirts a year at $20 each. They want to increase the price. A survey indicates that, for every $2 increase in price, there will be drop of 60 sales a year. What should the selling price be in order to maximize the revenue?

 

[Ray Vickson]

Hi, I don't understand what this question is asking and I have idea how to do it.. any help is very much appreciated! What does it mean to "maximize the revenue"?

The Club sells sweatshirts as a fundraiser. They sell 1200 shirts a year at $20 each. They want to increase the price. A survey indicates that, for every $2 increase in price, there will be drop of 60 sales a year. What should the selling price be in order to maximize the revenue?

First of all: what is meant by the word "revenue"? You need to answer that before you worry about maximizing it.

 

[bonnieerika]

First of all: what is meant by the word "revenue"? You need to answer that before you worry about maximizing it.

I know what revenue means now. It means the total income.

 

[Ray Vickson]

I know what revenue means now. It means the total income.

OK, so you want to achieve the largest income. Presumably, the income depends on the selling price, and you need to figure out what this dependency is. You are told all the information you need; just sit down and think things through, and pay attention to all the information your are given. If I say more I will essentially be giving away the solution.

 

[elusiveshame]

One technique to building a formula is to create a table with the known variables and the outputs, and then once you see the pattern of the curve (where it starts to drop in price), you should be able to create the formula and get the answer.

 

[HallsofIvy]

Hi, I don't understand what this question is asking and I have idea how to do it.. any help is very much appreciated! What does it mean to "maximize the revenue"?

The Club sells sweatshirts as a fundraiser. They sell 1200 shirts a year at $20 each. They want to increase the price. A survey indicates that, for every $2 increase in price, there will be drop of 60 sales a year. What should the selling price be in order to maximize the revenue?

So if "s" is the price then s- 20 is the "increase in price" over $20 and (s- 20)/2 is the number of "$2 increases in price". Since " there will be drop of 60 sales a year" for each such $2 increase in price, How many shirt sales will you lose? Since you sold 1200 at $20 each, how many sales will you have at price x?

 

[bonnieerika]

Thank you all, I figured out the problem myself. It's just a simple equation and I completed the square then found the x intercept. :)