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Math  /  Word Problems

QuestionA retailer sells sunglasses for \$45 with 50 customers daily. For each \$1.50 price increase, he loses 1 customer.
a) Show revenue R=(45+x)(50−x1.5)R=(45+x)\left(50-\frac{x}{1.5}\right). b) Find the optimal price for maximum daily revenue and the revenue at that price.

Studdy Solution
Calculate the value of RR.
R=−2(225)+300+2250=$2325R = -\frac{2}{}(225) +300 +2250 = \$2325The retailer should set the price of his sunglasses at 45+15=$6045 +15 = \$60 to maximize his daily revenue. The maximum daily revenue is \$2325.

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