A manufacture has been selling 1400 television sets a week at $480 each. A market survey indicates that for each $24 rebate offered to a buyer, the number of sets sold will increase by 240 per week.

Question

a) Find the price p(x) of each television as a function of x, where x is the number of the television sets sold per week.
p(x)=

b) How large a rebate should the company offer, in order to maximize its revenue? dollars

c) If the weekly cost function is 112000+160x, what value of the rebate maximizes the profit? dollars

Answer 1

12