Question

Previous A company finds that if they price their product at $ 50, they can sell 620 items of it. For every dollar increase in the price, the number of items sold will decrease by 10. What is the maximum revenue possible in this situation? (Do not use commas when entering the answer) $

Answer 1

To calculate the maximum revenue, we need to determine the price that will generate the most sales. Let's calculate the revenue for different prices:

| Price | Number of Items Sold | Revenue |

|-------|---------------------|----------|

| 50 | 620 | 31000 |

| 51 | 610 | 31110 |

| 52 | 600 | 31200 |

| 53 | 590 | 31270 |

| 54 | 580 | 31320 |

| 55 | 570 | 31350 |

| 56 | 560 | 31360 |

| 57 | 550 | 31350 |

| 58 | 540 | 31320 |

| 59 | 530 | 31270 |

| 60 | 520 | 31200 |

| 61 | 510 | 31110 |

| 62 | 500 | 31000 |

As we can see from the table, the maximum revenue is $ 31,350 and it occurs when the price is $ 55. Therefore, the maximum revenue possible in this situation is 31350.