Question

A manufacturer of a certain brand of appliance estimates that he can sell 5000 units a year at Php 900.00 each and that he can sell 1500 units more per year for each Php 100.00 decrease in price? What price per unit will give the greatest returns?

Answer 1

if there are x decreases of 100, then
price = 900-100x
demand = 5000+1500x

so, the revenue r is

r = (900-100x)(5000+1500x)

So, just find where dr/dx = 0 for the maximum revenue. You know it is a maximum since the parabola opens downward.

Note that x is not the answer to the question.

Answer 2

so how do we find the answer?i still don't get it

Answer 3

Every two years, a manufacturer's total yearly sales decline 20%. She sells 400 total units in her first year. Rounded to the nearest unit, how many total units will she sell her ninth year?