Question

a boutique handmade umbrella factory currently sells 22500 umbrellas per year at a cost of 9 dollars each. in the previous year when they raised the price to 16 dollars, they only sold 12000 umbrellas that year. assuming the amount of umbrellas sold is in a linear relationship with the cost, what is the maximum revenue?

Answer 1

The maximum revenue of the two years is $ 394,500 .

Explanation:

Given as :

The current number of selling of umbrellas = 22500

The price of each umbrellas = $ 9

So, The Total price of 22500 umbrellas at $ 9 per umbrellas = $ 9 × 22500

I.e The Total price of 22500 umbrellas at $ 9 per umbrellas = $ 202,500

Again ,

The total number of umbrellas sold previous year = 12000

The price of umbrellas = $ 16

So, The Total price of 12000 umbrellas at $ 16 per umbrellas = $ 16 × 12000

I.e The Total price of 12000 umbrellas at $ 16 per umbrellas = $ 192,000

So, The maximum revenue of the two years = $ 202,500 + $ 192,000

I.e The maximum revenue of the two years = $ 394,500

Hence The maximum revenue of the two years is $ 394,500 . Answer