Question

Damar writes a book on how to save money. He wants to determine the price at which he should sell the book in order to maximize his revenue. He comes up with the equation y=−0.1x2+26x
𝑦
=
−
0.1
𝑥
2
+
26
𝑥
, where x represents the selling price and y represents the revenue earned. In terms of the context, describe in 1–2 sentences at what sale price his book would return maximum revenue and what that revenue would be.(2 points)

Answer 1

The revenue is maximized when x = -b/(2a) = -26/(2·-0.1) = $130, giving a maximum revenue of y = -0.1(130)^2 + 26(130) = $1,690. Thus selling the book for $130 yields the greatest revenue of $1,690.