Asked by soff

A restaurant sells about 330 sandwiches each day at a price of $6 each. For each $0.25 decrease in price, 15 more sandwiches are sold per day. How much should the restaurant charge to maximize daily revenue? What is the maximum daily revenue?

Answers

Answered by Steve
revenue = price * quantity, so if there are x price decreases, we have revenue is

y = (6-.25x)(330+15x)
= -3.75x^2 + 7.5x + 1980

Now, just find the vertex of that parabola to get the maximum revenue and its price. Recall that for

ax^2+bx+c

the vertex is at x = -b/2a
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