Question

The manager of Three Fountains finds that revemue R based on an hourly fee F for skating is represented by the function R = -480F^2 + 5760F. What hourly fee will produce the maximum revenue?

Answer 1

To find the hourly fee that will produce the maximum revenue, we need to find the value of F that maximizes the function R = -480F^2 + 5760F.

To find the maximum of a quadratic function, we can use the formula F = -b/2a, where a and b are the coefficients in the quadratic equation.

In this case, a = -480 and b = 5760.

Using the formula, we have:
F = -5760 / (2 * -480)
F = -5760 / -960
F = 6

Therefore, an hourly fee of $6 will produce the maximum revenue.