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What number of passengers will maximize revenue?

  1. Jun 6, 2005 #1
    New Horizons Travel adversities a package plan for a vacation. The fare for the flight is $400/person plus $8.00/person for each unsold seat on the plane. THe plane holds 120 passengers and the flight will be cancelled if there are fewer than 50 passengers. What number of passengers will maximize revenue?

    i understand this is a revenue quesitosn but how do u start it off?

  2. jcsd
  3. Jun 6, 2005 #2
    where k=400, k'=8.

    Derive with respect to n and find out for what value of n will the first derivation be zero. This must be a maximum for obviouse reasons. The answer you should get is 85, which is (thankfully) inside your constraints.
  4. Jun 6, 2005 #3
    thanks for your help. I got the right answer.
  5. Jun 6, 2005 #4
    how was the equation gotten
    pls expalin
  6. Jun 6, 2005 #5
    Every person needs to pay 400 dollars for their seat (kn) plus every person need s to pay 8 dolars for each empty seat ((120-n)k'n)
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