Question

Hiromi sells 12 T-shirts each week at a price of $13.00. Past sales have shown that for every $0.25 decrease in price, 4 more T-shirts are sold. Knowing that revenue is a product of price and quantity, Hiromi models his revenue by R(x) = (13 - 0.25x)(12 + 4x), where x represents the number of times there is a reduction in price.

Question: What is the maximum revenue Hiromi can generate each week? Show work.

Answer 1

(13-0.25x4)(12+4x4)=2,464
(13-0.25x5)(12+4x5)=3,845
(13-0.25x6)(12+4x6)=2,845
so your answer is 3,845 because if Hirome sells them for $11.75 he makes $3845 if Hirome sold them for $11.50 he makes $2845.80 and if he sold them for $12.00 he would make $2464.00