Question

The student union at Cavendish University Zambia is selling union branded

T-shirts to students at 50 Zambian Kwacha (K50.00) per T-shirt. They

must have a guarantee of selling 150 T-shirts. Furthermore, they agree that

for each T-shirt in excess of 150, they will reduce the price per T-shirt by

K0.04. How many T-shirts will it take to maximise the revenue?​

Answer 1

Need to sell at least 301 T-shirts

Explanation:

K50.00 per T-shirt for 150 T-shirts = K7500

Reduced price after selling the first 150 T-shirts = K49.96

In order to get K7500 once again, they must sell at least another
`(7500)/(49.96)` = 150.12 T-shirts to achieve the same earning.

150 + 151 = 301 T-shirts must be sold